A reverse split, in theory, doesn't change the market cap, or the value of your individual holding. If a 10-to-1 reverse split occurs when the share price is .0002, and you had ten million shares before the split, you will now have 1,000,000 shares, with the share price becoming .002 immediately upon the reverse split. So, before the R/S, you had 10,000,000 x $.0002 = $2,000; after the split, you'd have 1,000,000 x $.002 = $2,000. So, in theory, no difference.
The problem is, share prices usually decline after a reverse split. It's largely a psychological reaction. People see that the price per share has increased 10x, and (forgetting that they now have 1/10 as many shares as previously), they are tempted to sell. Maybe they think they're "taking profits." Hahahahaha.
There's one more factor in TLAG's case. The last few days, the share price has hit .0001 several times. It can't go any lower, because even the lowly pink sheets don't permit trading in share price increments of under 1/100 of a cent. So, it's impossible to put in an order at .00009. Next stop below .0001 is zero. A R/S is therefore almost necessary here, therefore, to keep trading going. Unfortunately, it will have the primary effect of giving the share price room to move below a pre-split level of .0001.
Management is screwed (or they screwed themselves, and shareholders) no matter what they do at this point. If they still have aspirations to be a listed, reporting stock, a 10-to-1 R/S won't be nearly enough. They'd need more like a 1,000-to-1, or even a 10,000-to-1 R/S, or several reverse splits having that effect.
