Not true. At least half of the payments have to be shares.

From the 8K (bolding added):

"Any installment payment may be either cash or shares of Common Stock, at the election of the Registrant, except that the Registrant may not pay less than six of the twelve installments in shares of Common Stock."

They can pay 3 of the first 6 payments in cash, and 3 of the second 6 in cash. That means that they don't have to pay shares until the 4th payment, which I think will be early next year. So they do have some time before dilution starts.

If there is a "fundamental transaction" (such as a buyout), SFMI can be made to pay the outstanding plus 25%. Not sure if that "prepayment" can be made all cash or not.