Our current O/S is 249,039,520...divide that by 40 and you get our new O/S of 6,222,988.
You can do the same with your shares. If you have a million shares today...you will have 25K after the R/S. However the current PPS of .0083 will then be $.332 so you lose no value.
R/S of 40:1:
A/S - remains 500M O/S - 6,222,988M O/S (fully diluted) - 24,971,096M Unissued - 475M (some room to work with!)