There was an adjustment of 2011 Annual Report Cashless exercise of outstanding warrants for Convertible debt on January 20, 2010 (154,744,444) vs. 2012 Q1 Cashless exercise of outstanding warrants for Convertible debt on January 20, 2010 (137,455,554). Probably from information obtained from Yuan.
If you add that difference to the 2012 Q1 Shares issued for cash at $0.0004 per share on January 25, 2012 (25,000,000) you get 42MM shares.
Seems odd my calculations come up exactly 42MM shares and change and you just keep putting words in my mouth taht I never said. Again, I doubt Yuan paid for the shares, but who knows.
What relevance does making the shares available prior to finalizing a settlement agreement have. Most companies have set asides for anticipated contingencies like litigation. Even insurance companies do that.
I am not a financial advisor and any of my opinions or comments should not be construed as investment advice.