The conversion of $7M was due to the Zapata deal:
"the conversion price for the September 2012 Note was reduced from $1.09 to $0.19 per share for up to $7,000,000 of the obligations thereunder, DMRJ agreed to convert $7,000,000 of the principal under the September 2012 Note prior to the consummation of the Zapata Acquisition, and the remaining conversion rights under the September 2012 Note and the February 2013 Note were waived'
It still is odd about who they transferred some of the preferred stock to.
The preferred stock is still being counted in the total debt figure of $84M, which is good as it almost seemed like there was an additional $7M due DMRJ.
It makes no sense for them to convert those shares to common stock anymore at $0.19 a share.
