I take it that this is a private company and that there's no practical way to value what these options are "worth", really. If that's the case I'd say you have no income to report. Once you do exercise the options - if you do - then the difference between the price you paid and the value of the stock received would be considered compensation and you should record that. You'd report it as a form of "revenue" on Schedule C for your independent contractor work.
Tom Young
