Well, first company is booking according to accounting convention( which I agree I have always found odd), so basically amount that can be converted is what they book + unamortized discount.
Second, you keep using market price. What you posted clearly shows that the note holder converts at market price LESS the discount so with 50% discount they convert at $.01.
Accounting a bit difficult to go through first time around to be sure !
Someone posted that there is some other restriction but I see nothing on filings indicating that.
These shares are converted free trading.
Think of it this way,insetad of buying restricted shares at a discount the note holder gets to choose when they convert and at what discount.Company records according to face value, but value of shares when converted doesnt come into play.
Of course if price drops the amount of shares to be issued increases.
My opinion is still they will reach at least 150 million outstanding this year, and twice the float you mention. However if they can achieve their stated projection stock should do well.
