It is unknown how many shelf shares were given to relieve each dollar in debt because e.Digital has not disclosed that information. It only gives an "assumed" value "for the purposes of the filing."
However, it appears that the relative value of the shares given in relation to the debt relieved has been very small. If you add up the "assumed" value of services paid for with shelf shares and compare it to the previous accounts payable, it's pretty clear that the company discounts these shares substantially.
It's also possible that they have an agreement with the vendors to assure that the shares given will fully satisfy the debts, so that if the vendors who receive shares as payment are not able to sell them for as much money as they were owed, they may be issued more shares until the debts are paid off.
Whatever is happening, it is not a good thing for shareholders. Sometimes just doing whatever it takes to keep the doors open and the salaries paid is not in the best interest of investors, particularly those buying or adding to their positions at this point.
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