One of the biggest risks in investing in venture stocks is risk of dilution. As the company issues more shares, your position becomes smaller in terms of percentage ownership of the company. The only way to maintain your percentage ownership is to continue to buy shares at the same rate the company issues them.

Most companies must continue to raise money and issue shares until they have enough revenues to cover their operations or secure financing at a reasonable rate. Some issue convertible debentures which becomes problematic when there is not enough revenue to redeem them so they end up paying interest at high rates and issuing shares once the debentures are converted to equity in the company.

Nerds on Site, (CSE:NERD, OTCQB:NOSUF) has been fairly modest in terms of issuing shares. From the most recent (January 26, 2024) MD & A:

On November 26, 2018, the Company completed its initial public offering (“IPO”) of 13,519,830 units (“Units”), each Unit consisting of one common share in the capital of the Company (“Common Shares”) and one half (0.5) of one Common Share purchase warrant, at a price of $0.35 per Unit, for gross proceeds of $4,731,940. The Common Shares are listed on the Canadian Securities Exchange (“CSE”) under the symbol NERD and began trading on November 28, 2018 at the opening of the market.

In November and December of 2018, convertible debentures with a face value of $2,826,500 plus interest accrued for $147,057 was converted into 11,894,226 units at $0.25 per unit. Each Unit consists of one (1) Common Share and one (1) Common Share purchase warrant of the Company (each a Warrant). Each Warrant entitles the holder thereof to acquire one (1) Common Share for an exercise price of $0.30 per Common Share for a period of two years following the Closing Date.

In March, 2019, the Company raised $600,000 by way of a non-brokered private placement offering of 3,000,000 common share units of the Corporation ("Units") at a price of $0.20 per Unit, with each Unit consisting of one (1) Common Share in the capital of the Company ("Common Share") and one (1) Common Share purchase warrant ("Warrant"), with each whole Warrant entitling the holder thereof to purchase one (1) additional Common Share at a purchase price of $0.25 per Common Share for a period of three years from the closing.

NERD will be issuing more shares upon the acquisition of Nerds on Call as described in this NR (Nerds On Site Highlights Details for its Nerds On Call Asset Purchase).  Issuing shares that increase revenues and the outlook of the company is usually looked upon favorably by current investors.

From the previously mentioned NR: "This strategic acquisition is expected to significantly enhance the service offerings of Nerds On Site, making it a powerhouse in the IT and cybersecurity domain. The company is well-positioned to leverage the strengths of both organizations to offer an expanded suite of services and cater to a broader client base. "

Nerds on Site is currently trading below 1x revenue, net loss last Q only $16k. TTM revenues of $10m/yr. Decent sized float of 89m shares with over 50% insider ownership. Recent acquisition to add 20% to annual revenues.

Nerds on SIte trades on the CSE as $NERD and on the OTCQB as NOSUF referred to on ceo.ca as $NOSUF.US