Companies will reserve for the exercise of future warrants and options and for stock conversions (e.g., convertible debt, preferred stock) against the authorized but unissued share count.

So, using rough numbers just for example (I know these aren't exactly correct - look at SEC filings if interested), CYDY has 1.75B authorized shares of common stock and 1B shares of common stock actually issued and outstanding.

However, CYDY also has 500M warrants, options, and other shares it may be required to issue in the future due to warrant/option exercise or stock conversions of convertible debt or preferred stock into common stock. As a result, CYDY will reserve another 500M of the 1.75B authorized shares of common stock against those future issuances.

This leaves only 250M of the 1.75B shares of common stock actually available for "new" issuances.

When a warrant holder exercises warrants, you can think of the resulting shares received by the warrant holder as issued out of the 500M "reserve".

Assume 250M warrants are exercised. After that, all else equal, CYDY would have 1.25B shares of common stock issued and outstanding, 250M shares reserved against prior obligations, and 250M "free" shares available for new issuance.

Hope this helps.