I think the whole report was rushed.
Preferred Shares March 31st 32,681.97 vs June 30th 3,268,197. That's x100.
My absolute favorite part of the 10-Q is under expenses. $657,789 designated as "Other". That could be hookers and blow as far as we can tell. Being that it's the highest expense, there's also a chance it's the actual cost of product, but they didn't want to give us any hints on unitcost.
We've been screwed over before on an unaudited 10-Q showing 0% dilution, I will wait for audited 10-Q.