The CEO putting up a line of credit is a good thing
No doubt, considering the alternative. It's also how the insiders came to own about half of the shares of the company; they made loans to the company to keep it afloat after disastrous product flops. They took payback for the loans in shares.
But, who is responsible for the company's dire financial situation necessitating these loans? The ones putting up the money, and the ones that will be getting the shares.
I think some of the insiders may have also exercised some options at $0.435; the O/S seems to be 750,000 shares higher than what is in the last 10Q.
That brings some more cash into the company and more shares to the insiders.
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