I dont know. It is all speculation to a large extent.

For me - what benefit does the company have of doing it this way vs. filing and being forced to dramatically increase the AS and/or R/s...? Mgmt has loaned the money interest free and there has never been any selling by insiders. If it were a scam - how are they benefitting since they have been defferring large parts of their salary and/or it is commssion based?

We dont know the back and forth with the attorneys nor the leverage points. At this point - it really is just a matter of trust. Either you believe they have the best interest of shareholders in mind and it will continue to take time or you dont (or can no longer wait due to capital needs / more pressing opportunities). If you trust them - you have to assume they explored these options and waiting for the right time or being advised against it.

To me - it makes sense to file a motion gor a TRO for conversions based on the evidence they appear to have but there may be formalities i am completely unaware of.