The new debt CANNOT be converted under Rule 144. That new debt had zero to do with the OS increase. If they get current that new debt will be eligible for conversion in six months...not before.
What they do say...and anyone can READ...is they converted about $900K of debt and interest into 6.757 Billion shares in the last year. That is the amount that was eliminated by conversions through the end of JUNE 2017. BTW - that is an average conversion price of 0.00013 per share.
However, they added $1.3 MILLION of NEW convertible debt in May and June this year for a net INCREASE of $400K in convertible liabilities.
...which is what one would see when they "read" the disclosure.
Market Data 
Markets 
AI
