This letter seems to be missing some important information.
What happened to the preferred shares? The letter says that there are 1,756,736 common shares outstanding. Last we knew, Morris and Rosebrugh have 40000 post-RS preferred shares at 1:20 conversion. That's 1,600,000 common shares.
With preferred conversion, the common shares almost double == dilution. And, now we learn that there are 20,000,000 authorized. The authorized amount, combined with the history of this company, points to even more dilution.
Just my opinion, of course, based on what little information we're getting about this company these days. But, if an attorney is standing behind this and his letter is missing information that's important to shareholders then I wonder about what else isn't being disclosed.