Naturedog,
1. That was tongue in cheek. Someone did a subscription agreement and gave them cash for stock (reg d). Informally, they're running the show. They're going to get their cash back and a huge profit regardless. A few days ago I posted a legal brief on a case that Auction Mills was wrapped up in and it shows pretty well what happens behind the scenes.
The BOD on these stocks is a joke since regular stockholders never have formal representation. Do you think if the one giving them cash for stock says reverse split it that they'll say no? They have to jump through hoops. And the reason I posted two pr's that were almost identical (both companies from TX incidently, as was ECFL and AUML, hmmm) is that usually that's the one really in charge and telling them what to do.
2. They'll get the full million, most likely in multiple tranches.
3. I doubt he's put anything in. Without seeing any financial disclosure though, it's a guess.
The most valuable commodity I know of is information
The most valuable commodity I know of is information