Yea, it looks scary, but when you peel the brown skin off the banana, you can see the unbruised fresh banana. I am telling you, if you know how to read financial reports, you will see that 90% of those losses are paper losses only. Thats all. It isn't money they company borrowed, or was given, and it certainly wasn't used to pay salaries - thats the next attack I am sure of.
They raised a total of $400K through convertible debt, but if you read on, you will see they have all that debt locked under leak out agreements - especially after what Kodiak did - so give her some credit. She also paid almost half of it back before they could convert into stock. Also, if you read any of the convertible notes as attachments to the 8K's in 2015, they had to reserve 3 times the conversion amount at 35% of the lowest closing bid price....and that kept getting adjusted every time the stock fell. So lets say you have a $50K note, and the stock price is .10 The conversion price is .065 per share and how many shares do you need just to make 50,000? Then multiply that by 3 times that amount. And ALL THAT STOCK is valued for purposes of the paper losses the company has to report and disclose. Thats why its ridiculously high. And it is riduculous.
