"keep in mind, OTC is the wild wild west. That 'lender' lent ballas shares, on the idea they have a value yada yada. "
The lender lent Ballas money, and has the option to be paid back with shares at a value of .001 per share.
"maturity dates in 2018 and 2019. These notes contain a conversion feature whereby the notes are convertible in whole or in part, at the sole discretion of the holder, into shares of common stock at a conversion price of $.001 per share or the company “par” value."