Also note that tax at ordinary rates is due on the difference between the warrant price and fair market price of the stock at time of exercise. Thus, the longer a warrant holder waits to exercise, especially when the underlying stock is increasing rapidly in price, the more of the gain that is guaranteed to be taxed at ordinary rates, no matter how long the stock is held after the warrant is exercised.

So, yes, in the current environment for CYDY, warrant holders have significant tax incentives to exercise their warrants. This results in significant funding becoming available to CYDY, if large numbers of warrant holders do indeed exercise. IMO.