1). The note as a whole equates to $1.1 million dollars but that is not how much LTNC has received to this point. There was to b an initial tranche and then subsequent payments made over a period of time. DUH!
2). A note holder rely's on Rule 144 in absence of a Registration Statement in order to convert and free up shares in a company. In order to do this 6 months must pass before the note holder can have a restrictive legend removed in order to sell. It has not been close to 6 months yet. DUH!
3). The note has an amortized provision which gives LTNC a floor of .15 cents on the conversions. DUH!
Good try, but we should have a better comprehension of SEC Rules and Guidelines before things are simply made up.