Decision Diagnostics Corp (DECN)

[loanranger]

It's nice to be missed. Question #1:

Quoting from the Report.
"NOTE 8 – Stockholder’s equity
2018 Issuances

Preferred
During the quarter ended March 31, 2018, we issued 100,000 shares of preferred series “E” shares for
services valued at $6,000.
During the quarter ended March 31, 2018, holders of our preferred series “E” shares elected to convert
170,000 preferred series “E” shares into 2,380,000 shares of our $0.001 par value common stock."

Sentence #1 reports the issuance of Preferred E at a value of $6,000 for 100,000 shares (on 1/16).
Note that in sentence #2 they refer to the par value of the common stock....a meaningless number....instead of any actual market price. Sorting it out, there were two transactions according to the Statement of Shareholders Equity.
On 2/23 Robert Herskowitz (the same guy who got the 100,000 E shares "for services" valued at $6,000 on 1/16) received 1,400,000 common shares when he converted 100,000 E shares on 2/23. On 2/23 the share price closed at $.0505, so the 1.4M common shares were worth $70,700.
(The other 70,000 E shares in Sentence #2 were converted by a different party for 980,000 shares of common and I didn't look into the basis of their original issuance.)


That shouldn't be too hard to follow but here's a summary of the main point:
On 1/16 Robert Herskowitz received 100,000 Preferred E shares "for services" valued at $6,000.
On 2/23 Robert Herskowitz converted an equal amount of Preferred E shares (100,000) for common shares worth $70,700.

The conversion on 2/23 would have been based on the terms of the preferred (14 common for 1 preferred.) Justifiable or not, that seems to be the correct conversion. The question then is why would the 100,000 Preferred E shares "for services" be valued at $6,000?
What services were performed and what is the basis for that valuation? And if those $6,000 worth of shares could be turned into $70,700 worth of common then why not just pay the guy cash for his services and avoid the obvious dilution caused by the inevitable conversion?

I hope someone can answer these questions.