It's not clear to me why he would want to hold more shares. It wouldn't allow him to SELL more shares. As I understand it, any time he is issued any shares from this point forward he has to sell them, so the additional 71k shares would only provide a one time benefit because he CAN'T hold more than 9.99% of the O/S by agreement.
But to answer your question, I'm sure you noticed that they had to go back to the last 10-Q filing (incorrectly described as "Issuer’s Form 10-K, filed September 19, 2017", as you noted) for the O/S number that he used in his report. Without going back to check I'm quite certain that the company has included o/s numbers in 8-ks filed since that 10-Q was filed, so if the answer to your questions was "yes" he could have used one of those. I think the answer is "no". I believe the SEC requires the use of obligatory PERIODIC report numbers for this purpose, not voluntary text references in an 8-K filing.
I could look it up. Or you could. Again, the answer would be in the thread of rules governing 13-G and 13-D forms provided previously. I have the feeling that you're industrious enough to find it if you have the time.
You might conclude from the above that the limitation will NEVER change unless SIGO files their overdue filings. OR (and I hope they aren't reading this) an amended 10-Q or 10-K filing would have to have an updated o/s on its cover page that he could use.
I don't think he gives a crap about this issue. I suspect that he only cares about what he can sell, not what he can hold.
In spite of all of the above I don't think he can (legally) sell ANY shares at all until Sunset gets current in their filings, assuming that occurs after six months from the date of the note.
So this is what it looks like to me:
Either the Company files and Fife proceeds to dump shares hand over fist...
Or the Company continues in their default position and Fife calls the guy whose #1 on his speed dial list...his lawyer.
The only thing that would change that would be if 1)the company files and 2)their operations could create enough cash flow to pay off the notes as they come due. Frankly I think it would be crazy to think that they wouldn't file to show profitable operations if they had them.
per the note:
ARTICLE III. EVENTS OF DEFAULT
"If, at any time on or after the date which is six (6) months after the Issue Date, the Holder is unable to (i) obtain a standard “144 legal opinion letter” from an attorney reasonably acceptable to the Holder, the Holder’s brokerage firm, and the Company’s transfer agent in order to facilitate the Holder’s conversion of any portion of the Note into free trading shares of the Borrower’s Common Stock pursuant to Rule 144, and/or (ii) thereupon deposit such shares into the Holder’s brokerage account."
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