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I've done significant research on this recently - more with regards to the old Type A/B compensation. But yes, everyone is correct. If you failed to sign pick 1.6 this year, you'll get an extra pick at 1.7 next year (for example).
One wrinkle is with the supplemental round. If you fail to sign a pick from this round, you just get an extra pick at the very end of the supplemental round next year (after everyone else's Type A/B compensation picks).
And the cutoff is after the third round.
Oh, and one final thing I discovered that may be a bug. Let's say you had the 22nd pick in the 2nd round and failed to sign him, so you should get pick 2.23 next year. But let's say next year's second round is only 20 picks long (due to less compensation picks). If that happens, then you don't get your 2.23 pick - it just seems to vanish as far as I can tell.
Hope this info is helpful!
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