RE:RE:Results tomorrow, share price UP more than 7% The share based expense was valued using historical costs in Q2 and Q3 and not mark to market.
The options were valued at the date of grant and is being amortized over the life of the options. For instance, 940k options were granted on April 26,2022 and it was given a value of 60 cents per share in both second and third quarter even though share price fluctuated.
If one were to mark to market these options; I.e, suppose they were granted at the end of Q4, then Black Scholes computes a value of about $2.60 per option or an expense of $2.44m which would get amortized to reflect the current quarter. If it's amortized equally over, say, 10 quarters, then the expense would be $244k.
The company also issued an additional 1.1m options so this would take the fourth quarter expense above $500k. I don't believe this number to be material as the share price is still relatively low and the number of options granted is not significant.
https://www.mystockoptions.com/black-scholes.cfm?ticker=&s=3.73&x=1.5&t=2.5&r=4&v=71.9%25&calculate=Calculate