Jez and Jambone - PLEASE READ12 Nov 2023 14:19
Firstly, let me state my position in respect of QBT
I hold no shares, i have no position.
Let me settle your debate that is getting a bit tedious. I'm a qualified accountant and his my my understanding based on the 2022 annual report
QBT have 4 employees on their books (This will include FG)
They almost certainly have other 'people' who are paid as consultants as part of a statement of work - these costs are captured in Admin/ professional/ R&D costs in the p&L.
in FY22 - £188k wages was paid in total to employees (e.g. if divided equally less than £50k per head before tax)
(a similar amount was also paid into pension funds and employer NI)
In addition the company awarded share options to its employees:
37m were awarded in FY22 to directors and consultants. These are no more than a bit of paper that allows the owner of them to buy shares at the exercise price at any point up until the expiry date. It normal for the expiry dates to be extended in special circumstances as well. Note: No cash, and nothing paid for by the company. For the recipient it is like having bought that number of shares; but without paying anything, with no risk of making a loss - but will make money if the shares go above the exercise price before the expiry date.
However, because the company is awarding options in lieu of salary - accounting standards dictate that the company must work out their 'fair value' and expense that in the P&L. The fair value calc will be quite complex based on a number of factors and agreed with auditors.
In this case QBT calculated the value of the 37m options to be £1.72m - which equates to approx 4.6p an option
What does this all mean?
Employees did only receive £188k between them in cash on 2022.
The directors and consultants who accepted these in lieu of receiving higher wages must be very confident that these Options will prove valuable. For this to happen for many, the SP will need to be higher than 5p, and in some cases higher than 10p. e.g. If consultant has 2.5m options exercisable at 5p, and the SP goes to 6p, the consultant gets +£25k, QBT get +£100k
I believe many of the consultants' options expire this year....food for thought
QBT has outstanding Options exercisable at 5 pence over 137,500,000 Ordinary Shares and Options exercisable at 10 pence over 127,500,000 Ordinary Shares. Options expire between 2023 and 2026.
WHat do they know that we don't????
IN total the
Peter Fuhrman Mark Trafeli -
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