Steponit excellent explanation and for all intents and purposes exactly that. As the prepays are made then RESERVES will be put back into the Treasury, although the OS will stay the same. Most folks don't understand that when a company increases the Authorized, any use of these shares, must first be "issued. This automatically increases the OS without even using them for anything. In this case, they were issued to Treasury and then RESERVED.
NONE of the 1 BillION, extra Authorized would be used in the open market or allowed to FREE TRADE.