there must be a clause of sorts in the note contract that stipulates a variation in conversion terms. This is the only way it could be possible that I know of. The filings all say .05 conversion price, and the issuance price is without question .0004
My hope is that there is also a clause that adjusts the issuance price as well, although we don't know cause its not public info...that's why we need to get audited and uplist first.
As of now, there is about 1.8 billion more shares to dilute if they stick to the .0004 issuance rate.