easymonee: Well, what I told you is true. If you don't understand this concept, I think you would benefit far more by taking an investing course.
It's similar to your bank account. When you cancel a check, the money amount written on that check doesn't just disappear from your account unless of course you write a new one which is allowed to be cashed.
Cancelling shares doesn't mean anything in the bb/pinkie world. Most small companies do not bring in anywhere near the revenues needed to sustain their operations. They need to sell shares to stay alive, and insiders like to retain control. One popular way to do the latter is thru preferred shares. They can issue shares up to the authorized total for common (and preferred if they have any). Once they do, they either have to r/s or increase the authorized amount(s) to continue issuing more. Until they hit the a/s limitation, they can issue, cancel, reissue, etc. Like I said, no one knows the amount of preferred shares unless the company reveals it.
Filings which are 1.5 years old do not give an accurate snapshot for today. Things change over time like issued and authorized shares. From what I've read in their PRs, I don't see where they've laid out a viable business plan here yet.
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"We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful."
-- Warren Buffett
