I have been thinking about it and now recall that in-the-money options are dilutive, out-of-the money options are not. So I think this means that all warrants, options, and convertibles are counted in the 61.7 million securities, since at the time of the 10-Q the share price was at a low. If you subtract out the convertibles (17.2 million shares) and the warrants (21.6 million) from the antidilutive shares (61.7 million), that leaves 22.9 million antidilutive securities. So, I think this puts a cap of 22.9 million on the number of employee options that have been issued since 6-30-12. I think it may also puts a cap on the number of employee options plus restricted shares, but I am not sure. Also, the number of restricted shares is usually less than the number of options.

I agree with you that they will increase the number of authorized share and it will not be very difficult to do it.

I am still long since I have always expected dilution and still think that there is value.

Thanks for your input,

Bob