The accumulative debt has increased substantially despite the 800+ million in additional dilution this year. Remember, they only had around 10 million shares outstanding in January after the reverse split. This gives you an idea of the rate of increase.
How often do you see note holders collectively agree to take a break from pounding a stock? This stock has a real problem and they don't want to kill the golden goose. They need to get the price up for a number of reasons in my opinion. One reason is that the 800 million in additional dilution this year represents holders that have pent up losses which I'm sure are candidates for tax harvesting by the end of the month. Lets face it, nearly everyone holding right now is under water. they need to convince as many as possible that this stock has potential and to hold.
The company also needs funds to simply operate. The four biggest are taking a break to make room at the trough for the other needs in my opinion. Frankly the price level given the outstanding debt has probably become untenable.
I don't expect good news about the SEC inquiry that is going unanswered. I don't believe that have a good excuse for taking an impairment loss of $1.3 million in December from a $2.8 million deal in September. This deal also included 2 billion shares and the reverse split announcement a month latter which essentially ruined the shareholders. I believe that we will see another SEC correspondence letter soon.
This company's focus has always been the stock and the promoting of it. Only spending $3000 on sales and markets tells you that they aren't focused on revenue generation. You don't see PRs about specific client gains or revenue streams. I have been here preaching this since I flipped this in August when it ran to 04. Those days are history in my opinion.