I am no expert on this but this is my understandin
Post# of 3601
SEC Form 4 filings are issued for the purpose of gifting the three insiders; George, Gregory and Barry, convertible B shares in adequate amounts for them to maintain a specified minimum percentage ownership of all outstanding company shares.
Each time the company issues new shares of stock, for example, as collateral for a purchase agreement (convertible) loan, that increases the number of outstanding shares. Subsequently, another round of form 4's must be issued to grant additional shares to the insiders. They are always issued in sets of 3's; one to George, one to Gregory and one to Barry. Here are the numbers:
Per the company charter, George will always own 78%, Gregory will always own 5.31 % and Barry will always own 4.157% of all outstanding shares. In essence, the insiders will always own a little more than 87% of all outstanding shares of the company. (These shares are not included in the "float" until they are converted.)
Here is the kicker... Each of these Series B shares may be converted to 1,000 common shares after two years from date of issue. To my knowledge, none have ever been converted but this has been going on for at least 6 or 7 years.