If what your saying is true then Howard is an out and out liar which I don't believe. Also, there is very little in the way of stock left to dillute between the O/S and A/S. The company would need to get BOD approval to increase the A/S and allow for the dillution. Also that information would need to be made public which could be checked very easily.
Apparently there was a lot of stock available to buy at .012.