Welcome to the board , endless, and all the other new posters over the last while.

IMO, the recorded short interest on us now is quite low, and irrelevant. The naked shorting of our stock, if was/is present is hard to figure out. There are a few variables, as you can see in the excerpt and link below, that could have happened. I will touch on one.

A naked shorter could continuously drive a stock price down without really having to cover. He fabricated the shares in the first place to sell, so they were not actual shares of the company. Does he ever have to buy back shares that he didn,t borrow, but actually fabricated? I don,t think so. So, IMO, if we were/have been attacked by naked shorting, don,t expect these fabricated shares or failure to delivers (FTD) to ever be covered. The only way they would have to cover is if one of the exchange commissions could actually prove and track the culprit down. Our stock was and is being monitored by the securities commissions for any such thing and I don,t see this affecting our sp in the future.

Here is an excerpt, and the link it came from is below that for further reading.

Naked shorts in the United States

Naked short selling is a case of short selling without first arranging a borrow. If the stock is in short supply, finding shares to borrow can be difficult. The seller may also decide not to borrow the shares, in some cases because lenders are not available, or because of the costs of lending. When shares are not borrowed within the clearing time period and the short-seller does not tender shares to the buyer, the trade is considered to have "failed to deliver."[13] Nevertheless, the trade will continue to sit open or the buyer may be credited the shares by the DTCC until the short-seller either closes out the position or borrows the shares.[4]

It is difficult to measure how often naked short selling occurs. Fails to deliver are not necessarily indicative of naked shorting, and can result from both "long" transactions (stock purchases) and short sales.[3][14] Naked shorting can be invisible in a liquid market, as long as the short sale is eventually delivered to the buyer. However, if the covers are impossible to find, the trades fail. Fail reports are published regularly by the SEC,[15] and a sudden rise in the number of fails-to-deliver will alert the SEC to the possibility of naked short selling. In some recent cases, it was claimed that the daily activity was larger than all of the available shares, which would normally be unlikely.[13]

http://en.wikipedia.org/wiki/Naked_short_selling

On the topic of stock options.

There are ways that a price is set. I beleive some companies set the price around the low on the day its trading and record this price later. This is only my opinion and there is info below that you can check to get your own perspective on it.

There have been 6 million incentive stock options granted since Nov 11 last year at sequential prices of $1.80 and $2.01. These options are payment for a lot, if not all our employees. Some of them may never be exercised or they all may. If they are all exercised in time, it will cash up the kitty approx $12 million and a pp will not be needed or any other financial help in moving forward. I am guessing that the company can issue approx another 12 million shares out of the treasury, we voted on the amount last AGM and it was approved.

I beleive our employees have increased and so have the calibre of our lawyer, consultants,accounting, etc. This may account for the high number granted.

http://en.wikipedia.org/wiki/Employee_stock_option