It's called corporate restructuring. Why would Tim care about that 400M shares if in the meantime he has generated millions of $$ via dilution. He got what he wanted. The 400M could be simply symbolic. Also, he will simply issue himself another 400,000,000 shares in the 'new' corporate entity. He will have a social issue though if he persuaded his family and friends into buying a large quantity of shares in TSOI. The SEC simply doesn't have the resources to go after 'ethics' violations in sub-penny stocks on the OTC. Investing in TSOI requires trusting Tim. -- technically TSOI is not on the normal OTC. It's on the pink sheets referred to as "Other OTC". This is barely on the SEC radar screen.