I haven't worked out the math, but it is my unders

I haven't worked out the math, but it is my understanding that you have to declare the difference between the stock price at the time the warrant is exercised from $3.44 + the price you paid for the warrant. But there is some sort of trade-off, between incurring taxable income versus not incurring any income but some long term gains on shares sold. I have to work out the math to figure out what that tradeoff is. It is all about minimizing the taxes paid, versus trying to not sell as many shares as possible when exercising the warrants. Obviously I do want to minimize how many shares I have to sell, which of course the higher the share price is at the time I exercise the warrants, the less shares I have to sell. However that incurs higher immediate taxable income, so there's some balance between the two (maximizng the amount of shares and minimizing the immediate taxable income).

I get what you are saying, anyway it is a nice problem to have, and I'll have to work out the math. The best solution might be to periodically exercise the warrants, perhaps once a month, under the assumption the price keeps rising. I have a lot of warrants, so with less than 5 years left until they expire, if i do it monthly I'd have to exercise more than 500 a month, believe it or not. As I said, it is a good problem to have, every problem in life should be like this!

I actually think that may be the best idea, just doing monthly exercises of the warrants, as many as required to exercise them all before they expire. That may be the best way to maximize shares, as over time there should be the need to sell less shares (as the price rises), and just pay whatever income taxes necessary and not worry so much about that.