It appears the EITF would like companies to hand over stock, not a promise of stock, in exchange for services. In that way, an investor will know there are not a bunch of hidden, backdoor deals that could affect the value of the company. This is a bummer deal for the Net crew. There is no guarantee the services will be delivered on time or reach the desired level of quality. Once stock is handed over, there is no way of getting it back.
Warrants provide a point of negotiation if a deal goes sour.
After all the fabulous parties to celebrate the arrival of 2000, the SEC has managed to serve up one hell of a hangover. Login Enter your username and password here to login, or click Join Now to register as a new user.