it looks likethey would have posted a profit for 2007 but g&a expenses + stock based expenses as a reason of the mergers
killed this.
so this year should be the time for them to show a profit under no more big irregularitys.
if you sell now...you definitly dont know what you are doing or have a urgent need for your money.
General and administration expenses, including stock-based compensationexpenses of $37.7 million, amounted to $74.3 million for 2007, compared to$24.8 million for the December 2006 Period and $14.9 million for the July 2006Year, including stock-based compensation of $22.2 million and $9.4 million,respectively. Higher administrative costs largely relate to the substantialincrease in size of operations resulting from acquisition activities andgrowth. Change of control payments were also made to certain former officersof the companies acquired. In addition to the growth in the combinedadministration activity internationally, integration activities requiredconsiderably greater travel and accommodation than normal, and salaries andwages increased as a result of an increase in the number of employees. Theexpense for 2007 includes salaries of $14.7 million, travel expenses of$3.1 million, consulting fees of $2.3 million and legal fees of $2.0 million.
Stock-based compensation expenses are calculated using the Black Scholesoption pricing model. The price at which the options were issued, as well asthe remaining term of the options, affects the fair value of the options andtherefore the expense incurred. In both the Uranium One / UrAsia Energytransaction and the EMC transaction, the market price of Uranium One's shareson date of acquisition was, in most instances, higher than the exercise priceof the unvested options acquired. This, combined with the volatility ofUranium One's share price around the time of the transactions, attributedmaterially to high fair values attributed to these options. As most of theseoptions were issued some time before the dates of the acquisitions, theirvesting periods from the date of the transactions are also relatively short.The stock based compensation expense is recorded using a graded vestingschedule and the expense is therefore heavily weighted towards the earlierpart of the vesting period. The combined effect of these factors was that thestock-based compensation expense incurred during 2007 was abnormally high.