As long as they stay below 5% holdings of the common, no sec filing is needed. Form 4 is only required for holders involved with management decisions. I'm not even sure a Schedule 13D is required while on the pinks either..at 5%. We can confirm this theory, by asking on the next call, if DMRJ has reached the 5% ownership threshold or if they've sent notice to IMSC allowing their holdings of the common to exceed 4.99%. If they have not exceeded the 5% threshold, then they must have given up control of most of their common received from the conversion.
If you consider why DMRJ would convert preferred to common, it only seems logical, if they are transferring or selling some of their ownership.
My guess on what is happening here. DMRJ is converting preferred to common at .08 and selling into the market..then lending back to IMSC..It's a backdoor form of dilution, but it's inherent in the capital structure and would eventually happen anyway. The .08 preferred are quickly drying up, which should soon help the stock price.
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