RE:Answering Option and Financial concernsInsightful1 wrote: Firstly on the financials, MedX has increased its burn rate but that is easily explained in the development of their own telemedicine network. I am guessing this is a 1.5 million dollar build so the increase in loss looks like it comes from the spend to build the network. So what do the shareholders get from MedX having its own network? The ability to scale their solution at the best cost. Currently, companies like MedX rely on third-party vendors. The OTN is a third party vendor, their network is brutal and is despised by Dermatologists so MedX decided to build their own network solution that will allow them to deploy their solution effortlessly. They can customize the network depending on the jurisdiction they are in and they are now fully scalable. I spoke with their COO and that was his reasoning.As for the options, MedX does not have the free cash flow to pay the going rate for their specialized people so how do you get a President or Medical Doctor who is a thought leader to join MedX? you incent that person with options. The idea being if they perform well then the share price will increase and they will benefit from the upside. This allows them to have skin in the game and be aligned with the shareholders. I think it is a great solution without straining cash flow.
Thanks for the reply. It does make sense but I feel the .25 strike price is a little low. If it was higher I think it would show they are more confident. It seems to suggest to me that we will not be going over .50 a share anytime soon - again just my take - hopefully I am wrong.........