I read back through SEC filings and there's apparently no convertible debt for this company at this time. There are a modest amount of convertible Series B shares, and holders of those shares can convert anytime, but it's not bad at all. Most of the volume yesterday was short volume, which probably means new shares, and my best guess is that some old Series B shares are converting. IMO, it can't be new shares from the September offering (most of which is complete judging from the float#) because shares from the offering are priced at .015.
So recent price action can probably be explained by first 1) shares from the september offering hitting the market and then, once the price fell below .015, someone deciding to convert series B shares.
Overall, this all looks good for a company like this. It's done some fundraising/dilution with share offerings, but not using toxic death-spiral convertible debt. Looking over the financials available from the sept. SEC filing, it's not yet a profitable business model, but things are improving. The company is primarily insider owned, and Lawrence has been buying up shares almost daily at all price points. Looks like he and the COO are floating this business and even deferring their own executive pay: their salaries are quite modest and if I'm reading the SEC doc correctly, they're seemingly not even getting paid until the business model generates sufficient cash flow.
As for retail stockholders, given the CEO has been continually loading his boat by the millions at .015, I'm comfortable loading between .01 and .012 and seeing what he has in mind. I'll probably wait to buy more until what I'm guessing are series B shares stop hitting the market.
