Update on this:
I sent him a reduced value as a lump sum payment if he were to liquidate now and here's what he came back with (I skewed some values, but still are within proportion):
1. Is what he's saying true?There is nothing to liquidate to meet this obligation. Even if there were, the rules of liquidation are that the secured debt holders ($300K worth) come first. After that would be our investors who have put in $2.0 million. Finally, any remaining amount would go to cover our vendor obligations ($300K) including your $20K. So, by offering you stock with a liquidation preference you are moving in front of the other unsecured vendor obligations.
2. Am I basically screwed?

