The treasury shares are NOT added to the outstanding shares ... not UNTIL and UNLESS they are sold to YA. The 21m shares shown above is an ILLUSTRATION of what would be outstanding IF the shares were sold to YA.

As the shares are sold (IF sold), that reduces the amount held as treasury shares and increases the amount issued AND outstanding.

This comment, taken from above, "... As of the date hereof, 17,696 Resale Shares have been sold to the Selling Stockholder under the terms of the 2014 SEDA for proceeds to the Company of $25,000 ..." states that only ~ 18,000 shares were sold for just $25,000 ($1.41/share). Much ado about nothing.

Hope this helps.