What it mean is that for ever 4 share you own, you have the right to buy an option for $.0001
The option has an exercise price of 4c.
Once the stock gets to $.041 you have made lots of money on your options.
If it gets to $1 you will have turned your $.0001 into $.96 per option
These options have an expiry date of 3yrs, so you have 3yrs for the SP to get above $.04