That's what I thought at first.
What looks like a nut sack is actually the base of the dick. The nut sack isn't in the picture (except for a little bit of it at the bottom of the pic)
That is one strange looking penis.
(My two-and-a-half year old son saw me getting out of the shower today and said "you have a little penis?" Well fuck, who's he to talk? And I'm positively John Holmes compared to the guy in the picture)