Hey this is tom nash, and this is a public service video, if you're a pilot, your shareholder, i'm convinced that you had this conversation with multiple family members, loved ones, friends about pilot here having a massive dilution problem, a massive stock based compensation problem, a massive insider Selling problem i'm gon na debunk all of these in just four minutes, and this video is something for you to send to them. So you can spend your long weekend actually having fun with the people. You want around you instead of arguing about palantir. So this is kind of a service for you number one.

Let's talk about delusion everybody likes to quote the fact that palantir went up from 600 million shares in 2019 to over 2 billion shares right now, more than triple the amount of shares. What they're not telling you is that the vast majority of the share increase happened when palleteer was a private company before it went public between the existing shareholders of the private company preparing to go public because palantir didn't go the route of an ipo. It went as a dpo direct public offering, which means the only market makers was the existing shareholder as a private company, so palantir, essentially performing a quasi-split to go from 600 million to 1.8 billion before any single retail shareholder was involved, is actually the part that's missing. In the story, let me just reiterate this: before a single shareholder came through the retail doors into palantir, the company had 1.8 billion shares, so public volunteers started with 1.8 billion shares, so the delusion of retail investor, the narrative that they're telling you happened from 1.8 billion To 2 billion within the next sorry, the past year and a half since end of 2020 up until now, a year and a half later, the dilution is 13 from 1.8 billion to 2 billion so 13 in the year and a half of delusion i mean i've.

Seen worse, i've seen better. It's definitely not as bad as telling you in mainstream media. Now the reason that you're, seeing this dilution, the 13 dilution, and why it's not even that is going to continue, is because the company actually started a whole new sales force department that which not even existed before so patented created a whole new sales and business development Department that came from scratch, so a lot of new employees came through the door, got stocks, rsu's stock options, and that created this 13 dilution in the past two years, but i bet you thought it's more than 13 now here's the thing. How do i know that this is slowing down? You know: what's the percentage of dilution from q4 last year to q1 this year, so in the past quarter you want to guess how much the company deluded investors by one percent, one percent dilution in the past quarter.

You can clearly see that it had to do anything with the whole new department being set up and not the operational kind of logic of palantir. So remember this number 1.8 billion shares was the amount of the share count before the company went public. Now they have 2 billion shares, they've only added 200 million out of 2 billion in the past year and a half 13 dilution since going public, so retail investors only got diluted 13 and the past quarter only one percent. Now, how much of this will continue is easy to see beyond just guessing look at the amount of outstanding options and outstanding rsu's the restricted stock units they're cousins of each other? This is essentially two components of stock based compensation that you're hearing about so palleter currently has outstanding 170 million of outstanding options and 140 million of rsus.

Now, if you convert it based on a four year, vesting schedule, which means that the options in the rsus vest within four years, so every year you have about four and a half percent dilution, four and a half percent. That's it every year for i'm. Looking at the numbers right now so annual dilution going forward is dropping from 13 in two years to about four and a half percent per year. If you want to add it and compare it apples to apples, so let's say that the 13 dilution that happened so far happened in a year and a half.

So four and a half times one point and a half would give you four and a half plus two point: two, so seven percent, so we're coming down from thirteen percent annual dilution to seven percent annual dilution. Again, not the most amazing numbers, but i mean for the next three to four years, we're probably looking at seven percent dilution, i'm guessing that's far less than what mainstream media and a bunch of these bears of valentina. That only look at the price of the stock are telling you, i mean seven percent dilution going forward, not the best i've seen, but i mean it's not as bad as you thought.