He is doing it because that is how unprofitable pink sheets do business. This is not some exception, it is how the pinks work - they borrow to keep the doors open, can't pay the loan back because they don't have the funds and issue shares. Then, they borrow more. It is a cycle that goes on until they either start making profit and can stop borrowing, or everyone gives up on them.
I can't even venture a guess whether they will show some profit before the OS is maxed out, but that is the only thing that is factually showing right now. Borrowing, and convertible debt. The only real question here is whether they can get off the treadmill...and begin showing profit, and stop borrowing.
News 
Market Data 
Discover 
