Spoken to company, page-11

Freshinvestor, you're obviously quite fresh so I'll give you a hand. Please see below for the definition of "underwriting" as per 'investopedia'....

"Underwriting By CAROLINE BANTON Updated May 13, 2019

What Is Underwriting? Underwriting is the process through which an individual or institution takes on financial risk for a fee. The risk most typically involves LOANS, INSURANCE OR INVESTMENTS. The term underwriter originated from the practice of having each risk-taker write their name under the total amount of risk they were willing to accept for a specified premium. Although the mechanics have changed over time, underwriting continues today as a key function in the financial world."

Now to summarise in case you can't quite grasp the above definition, when a company underwrites they take on certain risk and that is why they receive a commission. In this instance they are guaranteeing that they will buy any unexercised options at 10c and whether there be 1 or 1 million that they need to take up at 10c, they are receiving a commission of 6% which in this case equates to $630,000. In case you are not aware, even if they only need to take up $1,000 worth of options out of the potential $10.5m in options, they still receive their 6% commission based on the full $10.5m as that is what they guaranteed.

Now, notice the "loans" comment in the definition. Quite often there will be a loan involved in an underwriting agreement so it gives the company which has brought on the underwriter some cashflow in the interim. I'll give you an example with basic numbers that doesn't directly relate to SKN. I'm going to leave the commission component out to simplify things in the post below as for some reason I can't post the entire thing together: