Its a higher "rate" because of the low share price...
X amount of $$$ needed = More shares when the price is dropping.
Regardless, even if they had a maxed OS (1 billion), this is still a good buy IMO.... I can show you many heavily diluted pennies trading for much higher than this with not $1 in revenue and massive debt.
As far as i can tell theres a solid product line being sold in major retailers and nothing really shady about this stock...
Ps: But then again, when you are trading this much $$$ per day, none of this really matters. Dilution is absorbed fast... Go with momo... The WORST pigs can run for thousands of percent when theres momo.
Sometimes being uncivilized, can feel sooo civilized (June 2009 vacation)...