To correct your statement for others below is a cut and paste from a loan coming due later in the year. It, like the ones that came due recently allow the borrower to convert at 60% of the current stock price. I have no clue where the 0.046 you quote is coming but the filing clearly indicates the loans I refer to and their conversion price. Come Dec 23 if the price is $1.00 they will convert at 0.60 cents.
20) The Company borrowed $40,000 June 2014, due June 2015. The holder of the note has the right, after the first one hundred eighty days of the note (December 23, 2014), to convert the note and accrued interest into common stock at a price per share equal to 60% of the lowest trade price in the 25 trading days previous to the conversion. The Company has the right to prepay the note and accured interest during the first one hundred eighty days following the date of the note. During that time the amount of any repayment is 145% of the outstanding amounts owed. The Company recorded a debt discount of $40,000 related to the conversion feature of the note, along with a derivative liability at inception. Interest expense for the amortization of the debt discounts is calculated on a straight-line basis over the twelve month life of the note. During the six months ending June 30, 2014, total amortization was recorded in the amount of $438 resulting in a debt discount of $39,562 at June 30, 2014. Also during the six months ending June 30, 2014, interest expense of $44 was recorded for the note.