Yes, if you hadn't sold them, you would have paid tax on the difference between your exercise price and the fair market value on the date of exercise because they are nonqualified stock options.
Yes, if you hadn't sold any, your stock cost basis per share would have been .5 per share. The amount used to purchase the stock and the amount taxed as part of your wages becomes the cost basis.
Shares were used to complete the transaction in addition to your cash out of pocket (I used some of the shares to pay the cost and tax withholding). This likely leads to gain on the sale. This part is not in the example in your link.
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