Kgem,
If Frank is financing the company's needs under his December 2008 security purchase agreement with the company, once he converts the obligation from loan to shares, his shares are priced at a discount to the bid price. It is up to him to feed shares into the market so as not to drive the price too low.
Since he has not updated his Schedule 13D with another amendment or has not filed a Form 4 recently, he may be acquiring shares and selling shares as to not change his last previous reported share holding. If he maintains a market demand/supply balance, he makes money via the 20% discount.
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