New Form 4s Today

[mnholdem]

Feb 28, 2020 8:13:13 GMT -5 boca1girl said:

Feb 28, 2020 8:00:36 GMT -5 akemp3000 said:

Interesting that MC and others went ahead and exercised sizeable options at $4.55 in addition to those exercised at more current valuations. 

I don’t believe they were exercised, they became vested.

Typical footnote reads:

1. On May 19, 2016, the reporting person was granted an option that vests upon the achievement of certain defined performance milestones. On February 25, 2020, one of the defined performance milestones was met, resulting in the partial vesting of the option.

Reporting persons were granted options which give them right to buy common shares at a specific price after the options are vested. When the reporting persons eventually choose to exercise their Options, then another Form 4 will be filed with the SEC, although I'm not 100% certain because granting and even exercising Incentive Stock Options are not considered a taxable event until stocks are sold. 

The advantage of an Incentive Stock Option is that you do not have to report income when you receive an option or when you exercise that option. The employee pays no tax on exercise and the company gets no deduction.  Instead, if the employee holds the shares for two years after exercise, the employee only pays capital gains tax on the difference between the exercise and sale price, which is typically a lot lower than your regular income tax rate. 

[mnholdem]

Incentive Stock Option transactions fall into five possible categories, each of which may get taxed a little differently. With an ISO, you can:

1. Exercise your option to purchase the shares and hold them.
2. Exercise your option to purchase the shares, then sell them any time within the same year.
3. Exercise your option to purchase the shares and sell them after less than 12 months, but during the following calendar year.
4. Sell shares at least one year and a day after you purchased them, but less than two years since your original grant date.
5. Sell shares at least one year and a day after you purchased them, and at least two years since the original grant date.

Each transaction has different tax implications. The first and last are the most favorable. The time at which you sell determines how the proceeds are taxed.

Source: turbotax.intuit.com/tax-tips/investments-and-taxes/incentive-stock-options/L4azWgfwy

So there you have it. Everything you didn't want to know. 

[compound26]

Feb 28, 2020 19:01:43 GMT -5 mannmade said:

Could be associated with UTHR. Certainly not sales goals associated with Afrezza.

“1. On August 24, 2017, the reporting person was granted an option that vests upon the achievement of certain defined performance milestones. On February 25, 2020, one of the defined performance milestones was met, resulting in the partial vesting of the option.”

My reading of the above sentence lead me to believe the above "one of the defined performance milestones" is performance milestone for each of the officers, not Mannkind. 

Note that when the options were granted, there were no UTHR partnership. So it is unlikely to be something related to UTHR.  Plus if something that is a performance milestone with respect to UTHR occurred on Feb. 25, 2020, Mannkind has an obligation to disclose it to the investors. After all, they had the quarterly conference call on Feb. 25, 2020. 

It probably is not something with respect to the sales goals associated with Afrezza as Feb. 25, 2020 does not appear to be a date that associates with such a goal. Mannkind technically would not have the official sales numbers up to Feb. 25, 2020. 

It appears to me that this defined perforce milestone is that such person remains being employed by Mannkind on the conference call date for the fourth quarter 2019 conference call, which happens to be Feb 25, 2020. Such date is about 2 and half years from the date the option was originally granted. Plus, it is a performance milestone that each of the officers that have options vested met. 

I believe the above to be reasonable explanation since most of the time, the main condition in respect of whether an option grant is vested is just that the employee remains employed with the company for a certain length of period. 

[wyattdog]

archive.fast-edgar.com//20200304/ARZ2522C3C22Q9DV222F2ZZ2OWFQB22SZ222/

[pguererro]

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[sportsrancho]

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