This really isn't difficult to understand. Current price is .0004. By the time the notes are available to convert (if not already paid), we will have had a RS which will bring the conversion to .0032 if we see a 1 for 8 RS.
This is a crazy thought... Insiders are willing to buy this stock at .0004 (pre RS). That is the current price. We can buy at the exact same price while inventory lasts. If that doesn't get people thinking, nothing will.