Newbie question. What exactly happens when convertible notes are...

Newbie question. What exactly happens when convertible notes are terminated? Sounds self explanatory but on 7/4/16 Shashi converted only $473k of the $1m - at a premium instead of discount I believe so as to avoid dilution, and the rest was then terminated. Trouble I'm having is quarterlies still show the $1m in director financing available with the $473k drawn down.
I thought terminated would mean he converted so many and took the rest back - contract terminated, no more $527k available.
Or does it mean the rest he can no longer convert to shares and is now a proper payback loan?

Also, am i correct in seeing that they have only ever CR,d to Sophs and not retail investors? If so, given the recent soph CR and the time and time again that they have leaned toward not over diluting, I'm not so sure that it will happen now.

A couple of things that strike me as interesting are the issued shares escrowed until Nov 2017 and Nov 2018 convertible at 20c - 30c and up to 60c respectively.
Also, yes they only have 98k cash at end of this Q, and an expected outflow of 1.62m for next Q. But the 98k does not include the $809k from the recent CR which then gives them $907k on hand. They still need at least $712k to make up estimated outflow. quarter on quarter sales, activations and orders have increased, and with last quarter bringing in 1.2m, their revenues would have to drop more than 40% this quarter for them not to have enough.
Somehow, with the imminent Lenovo launch and Y-Hub being preloaded onto Lenovo devices with revenues shared ( Lenovo 2016 revenue was $44.91billion - not saying we get a share in all of that but you get the picture ) I can't see that 40% drop happening somehow.

As mentioned, am very much a newbie so please tell me what I'm missing.
I hold and have held for a fair while now. Am looking very closely at topping up, just want to see what I'm missing first.
Cheers