M Line Holdings Inc (MLHC)

[illegal_alias]

In the 10Q it states

The $48,130 cost in derivative liability arises as a result of a convertible loan from Asher Enterprises, Inc. in fiscal 2013. The loan was a convertible promissory note with the ability to convert to shares at a discount from the market price Until the loan is repaid a charge was included on our financial statements that reflected the possible derivative liability that could result if the loan was converted to shares in the Company. The derivative liability was calculated using the Black Scholes method.

Note that the loan was incurred in FY2013 which ended June 30, 2013. So, the current admin is still cleaning up crap from and paying for the sins of the previous admin.