Let's try to simplify this Taylor Orion:
There are two (2) Conditions for share issuance:
1. In exchange for money/services-- where the company receives value in either cold hard cash or asset(s) or "labor" and in return issues shares.
2. In the form of a dividend-- where the company gives "value" back to shareholders
If the company were to do #1, they do not have to reserve any shares to "maintain the preferred shareholders' interest.
If the company were to do #2, they have to include the Preferred Shareholders to the extent of applying the "value" to the underlying common shares already reserved.
--The likelihood of #2 happening anytime soon is near 0% given they are an R&D company attempting to roll out a commercial product and "cash" is in short supply. I can't think of 1 example of a legitimate company in a similar phase of "operations" doing this.
--The likelihood of #1 happening needs to be broken down into 2 types of issuances:
a. Exchange for Services: so far this has not occurred, and it will be reflected in the 10Q's Cash Flow statement.
b. Private Placement: 3 rounds of equity financing (placements) have been executed thus far and the likelihood a 4th will be executed is greater, but aligned with "cash burn" and short-term revenue generation. The last round looks to be able to get them into late Winter/early Spring IMHO...
... so again-- to sum it all up -- DRIO has ~45 million shares to issue without requiring an increase in the Authorized Shares, which is significant