I apologize in advance if I am wrong but is this not related?
Unregistered Sale of Securities
On June 30, 2014, two secured debenture holders converted $1,000,000 in principal of debentures into 16,666,667 shares of common stock and certain unsecured lenders converted $200,000 into 3,666,667 shares, each at a conversion price of $.06 per share. Exemption from registration is claimed under section 3(a) (9) of the Securities Act of 1933, as amended. Also certain officers, directors and consultant exchanged accounts payable totaling about $525,000 for 6,575,000 shares at a price of $.08 per share. Exemption from registration is claimed under section 4(2) of the Act.