How have you been? Hope you're doing well with your business.
When I initially read the 10Q regarding bonuses I read it as $10k (1%)for every million in revenue increases and 100k shares. I'm a firm believer in incentive based bonuses. I was fine with that. However, I was informed it was $100k. I can't see any justification for that at this point in time. I feel the salaries were excessive in the first place until we have achieved a consistent pattern of profitability.
I've spent some time trying to figure this out. It is, as I read now, an amendment to the prior bonus clause, in lieu of the Series "A" and "B" preferred stock bonuses, common stock.
They've done a tremendous job of creating a company with great potential (albeit from us, the shareholders, and our invested money).
My thought is: Give "us" something in return, before you take the money we provided you to make your millions.
Yeah, I have a little edge with me tonight over this. Yet, if it can be justified in the long term through continued product sales and profits I'll be fine with it.
One good thing about company executives receiving shares as bonuses, is the fact that they believe there is value in the common stock shares.
I think that this is a disgusting amount of greed. That's a total of 170 mm shares. Also, if their gross margins are 30% then there is $300k to play with for each $1 mm in sales. They are going to give up $220k of this to Brad and Cory before they do anything else such as pay other salaries, advertise or even pay back the IRS for the $140k that they still owe them.
Nearly $4 million in comp for two employees. The company is still not profitable and one of them just posts workouts all day. They are going to run out of suckers to buy the shares that they continue to flood the market with. Sick!