Its a higher "rate" because of the low share price...
X amount of $$$ needed = More shares when the price is dropping.
Regardless, even if they had a maxed OS (1 billion), this is still a good buy IMO.... I can show you many heavily diluted pennies trading for much higher than this with not $1 in revenue and massive debt.
As far as i can tell theres a solid product line being sold in major retailers and nothing really shady about this stock...
Ps: But then again, when you are trading this much $$$ per day, none of this really matters. Dilution is absorbed fast... Go with momo... The WORST pigs can run for thousands of percent when theres momo.