Looking at the financial statements, you may be correct. They certainly issue shares to others instead of cash, then it's up to the others to sell them.
The effect however is that the company creates new shares which cost it nothing and use them as payments for services. In effect it still creates dilution and is found money.
This however means the company has even less ability to control the number of shares for sale at any given time as once they are in the hands of many other suppliers, directors and service providers, it's up to those individuals when to sell and at what price.
Nonetheless, according to the last 10K, in their fiscal year 2010, the OS went from 88 million to 283 million, more than a 3 fold increase. In the 6 months between the end of their year and the end of the period covered by the last Q, an additional 197 million shares were issued (using the pre R/S share equivalents). And in the roughly 5 weeks between 10/31/10 and 12/6/10, another 186 million shares (again, equivalenced to the pre R/S shares) were issued.
So in roughly 19 months, the OS went from (pre-R/S shares) 88 million to 666 million, or 750% dilution.
Thanks for the correction, and if any of my above figures are incorrect, please let me know. And allow me to offer a correction to your earlier statement that the only dilution could be the 30 million (post R/S) shares registered in the S-8. I don't believe the company had enough shares registered with the prior stock incentive plans to provide the over 500 million shares issued from 5/1/09 to 12/6/10. That leads me to conclude that a large portion of the newly issued shares are not coming from the stock incentive plan registration.
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