I figured it out based on what I have witnessed and experienced with two, soon to be three, penny stocks I have owned, as well as the inputs of others both here on the TYTN board and elsewhere.
Trust me, virtually in all cases, the A/S number is UNTOUCHED. It's poor verbiage IMO, on their part, otherwise they would say that the remaining A/S balance will be reduce by the same ratio... the associative property of multiplication/division mathematically speaking.