It's less about the dollar amount and more about the fact that Bob handed them out with a .00005 conversion floor. Yes, that's four zeroes. He's made a killing for his toxic lenders.
If the share price appreciated even a little bit, even to trade at its market cap, remaining debt could convert out at trip two. If that remaining debt is $100K, that's 500 million shares that'd need to come to market.
Problem is, as we've seen, Bob doesn't care. Note holders never care, but Bob should absolutely care about appreciating the share price so conversions don't destroy his ticker. He doesn't. Shareholder equity matters not a bit to him. So when that 1.3 billion volume day rolled in, note holders that were desperate to dump, dumped. 500 million dumped for a measly $25,000.
Even if there were now a theoretical $75,000 remaining, using the same logic, it will convert out to 1.5 billion shares.
The most disgusting thing in all of this is... Bob is taking out toxic loans for paltry amounts, like $10,000 to $25,000, which winds up converting into 100's of millions of shares of common stock. MEANWHILE, he's PAYING himself 100's of thousands of dollars a year from company profits.
Rather than use his lofty salary towards the company, he's letting shareholders pay the company bills, destroying their equity in the process.
Bob has made a killing. The toxic lenders have made a killing. Shareholders have paid for all of it for absolutely no reason. I imagine this is why FINRA denied his reverse split request. They can clearly see he has the capital to NOT need the toxic loans, but he rather use a large portion of profits after expenses to line his pockets.
The carrot on the stick this time was that Bob used company cash to ACTUALLY make a cash purchase of needed equipment rather than take out a toxic loan. That made certain traders lean in with interest, but some of us still knew the immediate reality the financials still portended, especially when coupled with Bob's tactics. The subsequent 10-Q showed that Bob had taken out a toxic loan a mere few weeks earlier, the A/S increased, lies were told, and the rest his history.
It's not a bad company, it's a terrible CEO (as far as shareholder value is concerned). Is all lost? Not necessarily. The company still trades below its market cap as a result of looming dilution. If the next 10-Q, which is due in April, I think, shows that no new notes have been issued, debt remaining is minimal, and revenue / profit is up, it's possible for it to grow legs, especially with the usual round of hype PR's and whatnot.
Do I think the share buyback is ever happening? No, not at all. The best thing Bob could do is actually get note holders to hold off, show no new debt, and show revenue growth.
Time will tell. Whatever the outcome, I will never like Bob Cashman. Never have.
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