The stock options don't worry me to much as many of these guys are on low wages so a bonus is good.  If they can get annual revenues up to 20 mill and net above 6 mill then 2.5 mill shares won't be much of an overhang.  If the stock does drop to $1 then I would like to see them initiate a share buy back program.  They can easily afford it to retire 5% of the float.