I think they want to get something on this 10-k. Specifically I think they want to get a reversal of the default penalty from last quarter. In order to do that they would have to pay off the notes. In order to pay off the notes they likely need to at least have a def 14c to authorize the share increase.
I had talked to Mark about the default and the one time $800k line item. He explained that the default had occurred as a result of their not being enough shares to convert the notes. He also explained that even though the notes weren't due into well into 2019 there was a clause that said they had to maintain a certain number of reserve shares. He said that the majority of this penalty was reversible once the notes were paid or shares were once again made available.
This would have a big effect on the 10-k as the reversal would effectively become a credit on the books. If you look at the result of operations total for the last quarter it was a loss of $759,088. The one time line item, (default penalty) was $793,327. Had that penalty not occurred they would have shown a net income of $34,239.
If it is reversed and the last quarter had the type percentage increase that the third quarter had they may be able to squeeze a slight profit out of 2018. That would go a long way with up list requirements of 2 years net profit.
Like I said I think the authorized will be increased to secure the financing, notes will be eliminated, and the 10-k will be adjusted accordingly.
Makes sense to me.
