Signal8 Academy track

Dilution & Toxic Financing

How share counts grow, how small caps raise money, and how to read the terms of an offering before it shows up in the price.

Dilution 101

What Is Dilution? How New Shares Change What You OwnDilution explained with worked numbers. What happens to your ownership when a company issues shares, and where to spot it coming in SEC filings.6 min
S-1 vs S-3 vs the Baby Shelf Rule, With the One-Third Math Worked OutHow Form S-1 and Form S-3 differ, who can use a shelf, and how the baby shelf rule caps small companies at one-third of public float per year.6 min
At-the-Market (ATM) Offerings: How Companies Sell Shares a Little at a TimeHow an ATM program works, what a sales agreement and prospectus supplement say, how fast an ATM can be used, and where its sales show up later.6 min
Warrant Overhang: Counting the Shares That Do Not Exist YetWhat warrant overhang is, how to total it from the warrant table in a 10-Q, and how cash, cashless and pre-funded exercises change the share count.6 min
Equity Lines of Credit (ELOCs): Why Up to $50 Million Is Not $50 MillionHow an equity line of credit works, and why share caps, volume limits, ownership blockers and price declines usually keep proceeds far below the headline.6 min
Registered Direct vs PIPE vs Underwritten Offering, ComparedThe three common ways small companies sell a block of shares at a fixed price, how each is registered and disclosed, and what the fees do to net proceeds.6 min
How to Read a 424B5 Prospectus Supplement in Five MinutesA section-by-section route through a 424B5, the filing that announces a shelf takedown, with the dilution table math worked out and a checklist.6 min
How to Estimate Cash Runway From a 10-Q, With Worked MathA step-by-step way to estimate how many months of cash a company has left from its 10-Q balance sheet and cash flow statement, and the adjustments that matter.6 min
Going Concern Warnings: What Substantial Doubt Means in a FilingWhat a going concern disclosure is, who makes the call, where it appears in a 10-K or 10-Q, and how to read the numbers behind it.6 min
Float vs Shares Outstanding: Three Different Numbers and When Each MattersWhy shares outstanding, non-affiliate float and tradeable float differ, where each comes from in SEC filings, and how the choice changes the math.5 min
Authorized Share Increases: Reading the Proxy Vote Before the DilutionWhat authorized shares are, why companies ask shareholders to increase them, how to calculate real headroom, and how reverse splits change the math.6 min

Toxic financing

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