what bothers me most is the incentive stock increase. Pay real dollars to reward, don't dilute the shares of the stockholders. I read the investigative report and to me it's on the money. I assume that this high profile entity got involved because some or one shareholder has deep pockets. Thank the heavens for that or we'd all be up the river w/o a paddle.
We also voted against the authorized share increase and the share incentive increase. We did so based on the fact that there intentions were not mentioned for the share increase and the procedure and guidelines were not stated on the incentives. EX: who gets the share incentives and what are they based on, the # of board meetings attended ? Who knows. To just state you want these increases w/o explanation is not the right way to treat your existing stockholders.
They could be looking to split their shares in the future to increase liquidity. BOD needs shareholder approval to increase the authorized shares prior to any stock split announcement. The 35 mil would be about double the current outstanding shares, which fits a stock split scenario. Institutions I believe can ask for increased liquidity to accumulate their shares more readily. From trading DSCI, it's very hard to buy shares with such a tight float. The other reason can include acquisition as you mention.