"Companies have various ways of providing the shares needed to turn over to employees who exercise options.

1 - Some companies draw on a reserve of shares that have not yet been in circulation.

2 - Others use profits to buy back shares on the open market, using them to build a reserve to meet options exercises."

lacquer nails smiley  Ithaca can apply the #2 solution and that way it won't increase the number of outstanding shares and the shareholders will be proud of Ithaca CEO.