You are wrong. It IS $10 million in financing, no matter how it works or may dilute or un-dilute or what sort of paperwork is involved or how you spin it or how it will change the world or blah blah blah.
It's outsourced dilution made to sound like some sort of legitimate financing with the intention of giving the company third party credibility for the sole purpose of convincing the naive to buy the diluted shares. Must have buyers to dilute. As you can see it works.