RoscoeThe options are excersisable over the next few years. So...

Roscoe

The options are excersisable over the next few years. So the cash will come in dribs & drabs, and will be balanced off by other expenses during that time.

The conservative way to calculate a Fully Diluted MC is to include the options WITHOUT including the excercise cash (unless it is very close) ... But then rather than including the options as fully paids, give them a discount to the heads to balance things somewhat.

So if I were interested in investing in AQD I would calculate thus:

Fully Paid's: 228 mill @ .10 cents = $23 mill
Listed Opt's: 105 mill @ 0.5 cents = $5.3 mill (50% discount)
Unlisted opt's: 28 Mill @ 0.5 cents = $1.4 million (50% discount)
Total = $29.5 million (close enough to even for me)

Below is a snippet from an article by Jason Hommel of First Majestic as to the importance of being conservative when working with Market caps.

cheers

"The figures that I usually work with are the "fully diluted" shares. I usually count all the shares fully diluted, which includes all warrants and options, because the only reason I'd buy a stock is for the bullish outlook, and under that assumption, I'd typically assume most or all warrants and options will be converted (and even more will be issued, as necessary). That's what I do to simplify the matter. It also helps me err on the side of caution, since it makes the company appear more expensive this way.

To find out the number of shares fully diluted sometimes takes a little work. You can sometimes find a current number listed at a company's web site, that's the fastest way, usually under "quick report", or "share structure" or "company info". Or, you can look up the financial reports. Then, you need to check the date of that number, and scan the news releases from that date until today, to see if any more shares or options have been issued through any recent financings. Add up the numbers, then multiply by the share price, and that's the highest market cap ...... But the market tends to give people what they want, and investors get what they deserve, as we are often reminded by Bill Bonner of the Daily Reckoning. Foolish investors who don't understand market cap, and who just want a "cheap share price" have created an odd type of demand."