can someone decipher this for me? page 6 (the

can someone decipher this for me?
page 6 (the last page) of the 3q report.
my take on this is RMH owed someone 1 million or so, which is now 1.1 million due to interest. and then, as of today nov 16th, the articles of incorporation were changed. this is where i'm getting lost. there was a dollar for dollar exchange for the same number of preferred C stock shares exchanged for this debt, and each preferred share is worth 50 common shares.
so......this debt holder, in lieu of his debt of 1.1 million, received 1,100,000 shares of this preferred stock, which is really worth 55,000,000 shares of common stock (@ $0.74) which is $4,070,000. this, RMH claims, is to reduce liabilities and increase equity.

Did i just decipher all of that correctly? is anyone good with this jargon?

5. Subsequent Events
A. Series C Preferred Shares and Convertible Note Exchange
As of June 30, 2015, one of Company’s debtholders held a convertible note in the
amount of $1,065,623. This balance was included in outstanding principal on
notes payable, which represented principal, accrued interest and other fees
related to the note. On November 11, 2015, the balance of the same note was
$1,107,607.
The Company amended its Articles of Incorporation as of November 13, 2015 to
create a Series C Preferred Shares, which are 12% interest bearing, cumulative,
exchangeable, non-voting, convertible Preferred Stock of the Company.
As of November 16, 2015, the debtholder agreed to a dollar for dollar exchange
for same number of Preferred C Shares. Each Series C Preferred Share can be
converted to 50 Shares of Common Stock. The exchange will reduce Liabilities
and increase the Equity.