The answer all depends on the current market share price, and how much current financing is requried. We are trading below a buck, and need funds desperately, so we are looking at diltion at under a buck with further dilution with their warrants at these levels.  If you extend the $2.05 warrants you only increase your odds the warrants get exercised and hence get funds into the company at $2.05 per share (once we are back above that).  If Don doesn't think the share price should be north of $2 then this discussion is all moot - we would be hopeless and he wouldn't see the point of extending useless warrants. 

If you let the $2.05 warrants expire, they will nevermore have a chance to get funds into the company.  Extending the $2.05 warrants, when the SP is so low, is just giving you future funding optionality.  Remember, giving away shares in new PPs today at $0.90 is waaaay more dilutive than at $2.05 especially when new PPs offer lucrative and further diluting warrants at these give away levels.  If the share price jumps to $3 next summer I think the company will be glad they extended the $2.05s as they start getting less-dilutive funds flowing into the company from exercised warrants.   

So I would extend them and only do minimal PPs until less dilutive options come along, like those warrants that could easily be in the money in the near future.  

JMHO