I agree. According to the most recent filings and the conference call, and taking into consideration the stated burn rate, there is sufficient cash to last until year-end. Significant warrants should be exercised if the share price gets anywhere near $.20. This, in conjunction with any non-equity inventory financing, could push another equity raise out a long way.
In addition, every machine sale is like a little annuity that should pay out indefinitely. Once a sufficient base of approximately 500 machines is in place we reach cash flow break-even depending on the price negotiation for disposable sales. I would guess they will sell this many machines within the next 12 months, given the probable demand in Kenya, Turkey and Bangladesh.
Also, that makes par on these bonds $1,000, or face amount of $6,700,000. The fact that they only received $4,000,000 in proceeds means they sold the bonds at a 40% discount to the face amount, or 60% of par and the interest rate is 20% on the cash payment.
They don't get cash upon conversion. The $.095 is just the conversion ratio. At least this is my understanding, I've never heard of a convertible bond that required additional cash for conversion. That would be a warrant, which they got a lot of, as well.