This is an exceptionally late reply, I apologize. I have been very busy, and really am not worried at all about this stock gaining value in the near future, so I haven't placed as high of a priority on checking in here.
I do agree with the first two statements you had made about terms of share issuance, however that is about where we disagree. Most of which is simply a matter of opinion, but some of it I am curious as to the rationale.
The opinion part - I think that the possibility of your option number 2 happening in the near future may be higher than you think. It also depends on your consideration as to what "near future" means. I am considering "near future" to be within the next 3-6 months. Since this company is an "emerging market" company, not just R&D, I think the possibility of rapid growth occurring quickly is significant - given the product design and intention. I would also take into consideration the number of countries they are currently marketable in, the approval for government reimbursement in some countries for disposable strips used, and the fact that there has been no return of product under warranty rights, to date. Revenue recognition will occur according to payment due dates and agreements, if they are already selling the products.
If the company were to participate in future financing agreements by sale of common stock equivalents, it is required that David Edery is able to participate in financing agreements, as well; to ensure his maintained level of "fully diluted percentage interest" in the company. So they would have to maintain a balance of unissued shares for this purpose, if the stock is used in any further financing agreement. This is stated in the new filing, as well, in more than one place.
So they don't have full access to the 45 MM shares, outright, for generalized dilution.
