GNUS already paid a substantial amount selling the convertible debt just a few months ago. They might as well hold onto it, it might come in handy.
Cash is king. If I were Andy, I would be looking for acquisition targets, either IP (intellectual property) or small companies. He could try to use stock to purchase, stock and cash, failing that all cash. It never hurts to have excess cash.
It looks like they may have returned part of the ($13.75 million) convertible debt (probably the $4 million promissory note).
Q2 is almost over. I doubt revenues are to high for the quarter. Kartoon Channel will only be live for the last two weeks in the quarter. And, because of all the financing the balance sheet may take a large non cash charge. Cleaning up debt won't help this quarter.