They did one r/s that was 1:50 after the peckham became ceo and I don't recall seeing the words "death spiral" anywhere in the filings.
Then you aren't looking very hard. Here, let me help you.
This is from 10-Q for the period ending September 30, 2014. You know what a 10-Q is, right? Well, let's just go to Note 8, pages 19-21. You know, the one headed "convertible debt":
On December 31 2013, the Company borrowed $40,000 from an unrelated third party. The loan is secured by the Company’s accounts receivable. The terms of the loan includes a loan fee of $400, which is being amortized and charged to operations over the term of the loan. Under the terms of the loan, the Company was required to pay back a total of $57,600 at a rate of $444 per day (excluding weekends and bank holidays). The effective interest rate on this loan is in excess of 32% per annum. On August 19, 2014, the outstanding principal balance and accrued interest became convertible into the Company’s common stock at a conversion price equal to the 40% of the lowest trading price per share of the Company’s common stock reported for the 10 trading days prior to conversion.
On February 14 2014, the Company borrowed an additional $75,088 from same unrelated third party indicated above. The loan is secured by the Company’s accounts receivable. The Company was required to pay back a total of $111,750 at a rate of $860 per day (excluding weekends and bank holidays). The effective interest rate on this loan is in excess of 50% per annum. During the 2014, the Company has made principal payments totaling $10,836, of which the last payment of $436 was paid in April 2014. On August 19, 2014, the outstanding principal balance and accrued interest became convertible into the Company’s common stock at a conversion price equal to the 40% of the lowest trading price per share of the Company’s common stock reported for the 10 trading days prior to conversion.
During 2013 and 2014, the Company has received funds totaling $655,000 (net of reimbursable loan fees and costs) through the issuance of convertible promissory notes. In addition, the Company has also issued convertible promissory notes to vendors and other creditors in cancelation of amounts due them. These outstanding balances of these notes are convertible into a variable number of the Company’s common stock. Therefore the Company accounted for these Notes under ASC Topic 815-15 “Embedded Derivative.” The derivative component of the obligation are initially valued and classified as a derivative liability with an offset to discounts on convertible debt. Discounts along with loan fees are being amortized to interest expense over the respective term of the related note. In determining the indicated values of the convertible notes issued in 2014, the Company used the Black Scholes Option Model with a risk-free interest rate of ranging from 0.02% to .13%, volatility ranging from 248.26% of 394,74%, trading price of $0,0002 and a conversion prices ranging from $0.00004 per share to $0.00064 per share.
Accrued interest on the above indicated notes that was charged to operations for the three months and nine months ended September 30, 2014 totaled approximately $36,689 and $117,792, respectively. Amortization of the discounts for the three months and nine months ended September 30, 2014 totaled $163,666 and $454,663, respectively, which was charged to interest expense. The balance of the convertible notes at September 30, 2014 including accrued interest and net of the discount amounted to $375,336.
