That is a very good question, and one that many of us that love STTK don't like to think too deeply about because it is completely out of our control. Pretty much you want to look at convertible notes. It doesn't look like we have specific share numbers and due dates for the shares but more of just dollar amounts associated with them, so how the company handles these is anyone's guess. We are here because we love this company and where they are headed. Hopefully they keep shareholders' interests as a high priority while they settle these kinds of things, they seem to be doing that so far. I've been spooked by convertible debt coming due in other stocks and avoided them, then watched them go for 1,000% + runs where they used that to convert some debt at a higher price. I expect with everything STTK has going on that they will be doing the same thing here and will drive the price up with one of the many catalysts out there. And yes even with any of the negative out there such as convertible debt, I still love this company, you can't really find any penny stocks that don't have convertible debt, and if you do, they won't be in as exciting of a business as STTK. so you have to overlook it to an extent and focus on the good, and there is plenty of good here. Anyway, here is an example of convertible debt from the 10Q:
"In connection with the settlement, during the six months ended February 28, 2014 the Company issued 8,576,000 shares of common stock to ASC in which gross proceeds of $60,060 were generated from the sale of the common shares. In connection with the transaction, ASC received fees of $19,739 and providing payments of $40,321 to settle outstanding vendor payables. Subsequent to February 28, 2014, the Company issued ASC 5,893,000 shares of common stock. The Company cannot reasonably estimate the amount of proceeds ASC expects to receive from the sale of these shares which be used to satisfy the liabilities. Thus, the Company accounts for the transaction as the shares are sold and the liabilities are settled. All amounts are included within accounts payable. As of February 28, 2014, all of the share issued prior to that date had been sold by ASC. Shares in which are held by ASC at each reporting period are accounted for as issued but not outstanding. "
So really we just hope that STTK handles things in a way that keeps the shareholders interests at heart such as increasing revenues and paying some convertible debt off with cash instead of shares over time, or drive the stock price up with any one of the upcoming catalysts (partnerships, new products, watchthis patent, etc) and take care of some convertible debt at .05-.10 or higher so that less shares may be used.
