Restricted Shares are those that have a legend on the cert because they were issued in a private transaction. Things like payment of salary, wages or debt are most common. After holding these for the required 6 months they can be registered for sale. My assumption is these are held by officers and directors and have not been cleared because they have no current intention to sell.
Reserve shares are held for a specific purpose. I assume these were part of those held by the convert guys but that they can't sell now that the company is not current on Ks and Qs.
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