The stock is not going to $.002 without a reverse split.
The 30 cent convert holders will never get to convert. If they reverse split, the 30 cents goes higher by they split ratio.
They will certainly reverse split at some point. The reason is that eventually people will stop buying at $.0001. Only the toxic note holders can buy lower. They may raise the A/S if they can keep getting buyers for the toxic shares, but eventually they'll have to reverse split and start a new pump and dump and hope they can get buyers in with the price above $.0001. They need a lot of cash and the toxics aren't lending more until they see there are buyers for their shares.
When you think "there can't be that many people falling for this", remember the Bernie Madoff story and recall that over $50 BILLION of smart money fell for a great story.