No, the "nitty gritty" isn't laid out how those preferred shares actually become those percentages of the "fully diluted" share structure. That's the question.
Since you're clinging to the "nobody can convert to more than 10% at a time" thing, let's go another level. You hold 83% of the Preferred C's which convert into that 87.5% ownership, so you are the one and only person that restraint applies to. The other listed owners of Preferred C's (and the unlisted ones) cannot hit that threshold. For the preferred D's, 80% went to Trillium Partners (now "Lancaster Partners"), so they could hit the 10% if they converted all of them on the same day.
Amongst all that, FRQN has become quite the ATM for Lancaster Partners, Red Road Holdings, and Frondeur Partners, that last "partner" converting at $0.00005 since November of last year, looks like 1.3B shares. Gobs of convertible debt with discounts built in to ensure profit.
That's all this company is, a stock selling scheme, and all the RS is about.
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