No, it is NOT an improvement! Go to a browser an open the Quarterly Report which is form 10-q. Looking at page 2 and at the line labeled "Derivative liabilities" you see the number 4,025,029 which shows a ~$5million reduction from the 9,317,475 number. Highlight that number (4,025,029) with your mouse in the browser, then hit CTRL-f. That should help you find that number in the document. That takes you to page 7 where you see that number detailed. There you see both the 4 and 9 million numbers of page 2 and the calculation of "Gain on conversion of debt and change in derivative liability " that results in (5,773,874) which means a loss of ~5M in derivative liability. Now highlight the 5,773,874 number with the mouse and again use ctrl-f to hunt for its appearance in the document. You will see it appear on the cash flow sheet, page 5 as a loss. So what does all that mean?
When you take a loan in the form of a convertible note, that loan must be repaid under the terms in the note. That usually is 6 to 9 months for those listed for OCLN (you can see them pages 10-11). That means during the time before it matures you have a "liability" and it is accounted as such. Convertibles are "paid" with shares at the time of maturation and so the company goes into its "bank" of shares and pays some to the Note lender at a value determined in the terms of the note. In this case that amount is $5,773,874. That is, you took a bunch of shares out of your bank and gave them to the lender. If you had sold them yourself, you would have had an inflow of cash into your account but if you use them to pay for the loan, you have an outflow (or loss) to your cash account which is why you see a loss on the cash flow sheet. Now you have increased the number of Outstanding Shares which is termed "dilution" and posted a LOSS on the cash flow sheet. If you look on page 3 you will see a 200% increase in the number of Outstanding Shares as a result of all this.
So, what you see when the liability is reduced is a big increase in the number of Outstanding Shares (the bloat) and an equal loss in cash flow (i.e it must balance). That loss is passed onto the shareholders.
If you look, you will see that virtually ALL of the incoming funds to OCLN are from Convertibles. There are no other significant sources meaning that they are living almost exclusively on shares which clearly devalues share value. Pages 10-11 show that there are many more convertibles listed that will be maturing after which, the liabilities line will increase again.
So when you see a reduction in liability that means a loss and dilution. That is the same thing as bleeding a patient to make them better!
