Spongetech Delivery Systems, Inc. (fka SPNGQ)

[Scad]

phrantic, "increasing the AS" in and of itself does not hurt you. It does not dilute you. I've spoken to newbies before with regard to this matter and there seems to be some confusion about what Authorized Shares really represents.

Authorized Shares is nothing more than the number of shares a company is ALLOWED = AUTHORIZED, to issue. That DOES NOT mean they have actually ISSUED them. That simply means that they anticipate the need, at some future point, to have a need for additional shares, for whatever reason.

Again, this act of increasing the number of shares a company is allowed to issue does not in and of itself dilute the shareholder. It only become dilutive if the company issues shares.

If a company is increasing their authorized, that tells me they are looking ahead to the future and determining what their needs will be going forward. They are planning and preparing the proper paperwork to ensure that they do not get in a pinch and not have enough stock available to them to fulfill their needs. They're looking ahead and planning accordingly.

Remember, stock is their currency. Let's put this in laymans terms. Hypothetical for you:

Let's say you have an equity line of credit on your house. You have 20,000 dollars available to you that you can use for improvements, pay off bills...whatever. But, let's say you are going to remodel and the remodel is going to cost you 40,000 dollars. Are you going to start the remodel and hope like he11 the bank approves an increase in your equity line so you can finish the job you started? Or, are you going to get approval on the equity line BEFORE you start your project, so you KNOW you can finish it. Would hate to see you with a bathroom wall knocked down and no money left to replace the wall.

Now, let's say you got approval for the 40,000 dollars and you have only spent 20,000. A friend steps up to the plate and does some work for you because he likes you and you end up not having to spend the full 40,000.

You had the money in place IN CASE you needed it.

Using the scenario above, the company is simply getting the "stock in place" in case they need it.

Hope that makes sense to you...made sense to me...lol.

Bottom line, don't panic when a company increases their authorized. That does NOT mean they have issued them and it does NOT affect the pps until they are ISSUED.