Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Info on new OWOO beneficial owner, Registered Nurse, Donna K. "Luv?" Harvey
200919523- 7
Disposed (Final) REAL TIME RESOLUTIONS INC vs. HARVEY, DONNA KAY 3/27/2009 Civil CONTRACT
200675635- 7
Disposed (Final) HARRIS COUNTY, ET AL vs.
HARVEY, DONNA 11/30/2006 Civil TAX SUIT
200644874- 7
Disposed (Final) HARRIS COUNTY, ET AL vs. HARVEY, DONNA KAY 7/24/2006 295 Civil TAX SUIT
LOL - e-waste and cannabis market - a logical business model as both are associated with being wasted.....
Correct - use the example I posted earlier about the last financing deal for evaluating this newest deal - I am expecting the next quarterly statement will list out the debentures as it has done in the past. Simply look at the "old" notes (ones with a date prior to yesterday's announcement of the new $800k) and see if they were reduced and/or eliminated. It is not an exact science as the elimination of the older notes could be due to actual conversion of the notes per the original terms - but in the best case scenario, any reduction one might infer that the new $800k note extinguished that debt.
By definition, an "equity lender" means they are loaning the company money in exchange for "equity" (re.: shares of the company to be redeemed at a later date if the note is not paid off in cash). The usual method for these financings would be to take the money, pay off more expensive (higher interest rate/steeper conversion rate) notes with the new money - in essence buy more time to delay when you need to pay off loans so that you can use those funds to either A) grow your business so that you can have more sales, thus use incoming revenue to pay off loans, or B) use the funds to refinance (similar to how you would refinance your home to get a lower interest rate or consolidate credit card debt) - or a combination of both of these items.
Regarding your comment on interpreting the financing as "non-toxic" - that is clearly subjective, however, one would have to agree that anything that "increases" debt and/or "increases the number of shares due to debt conversion" and/or is on discounted conversion terms less favorable than existing notes cannot be considered "non-toxic" - do you agree? Once we have the specifics of the new note, we can label it as such keeping these criteria in mind.
The red flag as I see it is that the last $500k was promised to do just that - the company explicitly stated in their press release that they would "eliminate and reduce existing debt". The evidence from the financials show that they did very little of that (only $4k was reduced on existing debt). This latest press release is more of the same - promising "By the end of the third quarter we will have consolidated and eliminated several of our most expensive institutional and private convertible notes totaling over $415,000. The purpose of this initiative is to phase out at least 50% of the total company debt by the end of 2014” - the difference this time around is that they are giving explicit numbers by which we can measure their actual execution. As you say, time will tell all too soon.
Regarding Robert Toner, Toy Fair, Toys R Us, Walmart, Wayfair, HEB and the other outlets - all of these might be something to be excited about - but when put in perspective of the stated inventory backlog they plan to sell at all of these outlets multiplied by any number you wish to use on a gross margin - latest financials show a 30% margin - but use something more optimistic like 50% just for grins. At $25 each, a 50% gross margin for the dolls will gross $12.50 per doll. The current operating loss per quarter is stated to be $3.9 million (or $15.6 million annually). Just to get out of the red, the company would then need to sell over 1.2 million dolls annually. The company has stated their ambitions to create inventory well short of this sales target.
The above figures are just the balance of sales vs. operating costs. The important part for investors is that what affects the share price is not so much the sales figures - but rather how many shares do they need to issue to fund ongoing operations. For me, the best measure of cash needs to issue more stock is shown by the Working Capital Deficit - this is the Company's stated immediate cash needs to fund ongoing operations. From the latest financials we find this statement: "The Company has incurred operating losses since inception, only recently emerged from the development stage, and has limited financial resources and a working capital deficit of $4,523,070 at June 30, 2014" - what this indicates to me is that the latest $800k will in fact not be used for paying down and eliminating debt, but in fact will be used to fund ongoing operations, putting the company further behind on the mountain of debt, which will in turn result in more notes being converted to shares.
Safeguards....you are correct. It is called having discounted convertible shares that are always in the money (ie variable conversion price based on a discounted percentage of the trading price).
need more options....
f) The Company is now out of the dilution zone, ok?
g) The Company will really use the new $800k (along with the $117.42 in cash) to reduce and eliminate all existing debt...unlike the last $500k...they really mean it this time....
h) Robust Christmas sales along with the $9k they netted in the last quarter, will more than offset $2.5 million per quarter they are burning thru for G&A.
i) The Company has magically found a way to restructure debt without issuing more shares through less favorable toxic debentures and will simultaneously eliminate existing debt, while growing the business
j) The Company can finally say for sure that "in 2014, we're going to be releasing a full thirty-minute feature length television ready pilot for the Prettie Girls cartoon" as well as finishing development of the "major feature film, an hour and a half feature film for the Prettie Girls".
k) With $800k, we can all "embrace our prettie"....
The evidence they received the $500k is in Debentures #47-65. The evidence that OWOO lied about using it to eliminate and reduce the debt is evidenced in the financial filings showing the growth in debt for these debentures from $1.0 MM to $1.6MM, while only reducing the old debentures by a meager $4k:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=106572760
OWOO - what they said:
HOUSTON, TX, Mar 21, 2014 — ONE WORLD HOLDINGS, INC. — The One World Doll Project, a subsidiary of One World Holdings, Inc. (OTCQB: OWOO) today announced that it has entered into an agreement pursuant to which a Santa Fe, New Mexico private equity group will invest $500,000 into the company. Today’s announcement represents a significant vote of confidence in The One World Doll Project by this group of preeminent, long-term investors,” said Joanne Melton, One World CEO. “This financing has provided an immediate cash injection on terms more favorable to One World Holdings, thus allowing for systematic reduction and elimination of existing convertible note financing that, upon conversion, could have resulted in the influx of millions of shares into the market,” she added.
OWOO - what they actually did:
From the June 30 Quarterly Report -
New Debentures #47 thru 65 totals $681,532. Of this amount, $401k is convertible into approximately 62.2 million shares. The remaining $280k is convertible at a variable rate - as indicated in my last post, at roughly 32% of current market value - roughly another 42 million shares - round out the total for both to 100 million share conversion rights for discussion purposes.
The old debentures #1-46 stood at $1,000,289 prior to the June financials. The old + new unpaid debentures as of June = $1,658,726. In other words, subtracting the new $681,532 debentures from the total, the unpaid balance for the old debentures stands at $977,194 - a reduction of only $23,095 on the old debentures.
Summarizing - OWOO stated that the $500k financing would be a systematic "reduction and elimination" of debt, but in reality, they only reduced it by $23k while taking on $681k of new debt at much more toxic convertible rates putting another 100 million into the conversion pool.
It should also be noted, that of the $23k reduced, only $4k was from the old debentures - roughly $19k was paid on the new debentures. Let me restate this another way: "The Company stated in a public press release that $500k was to be used to reduce and eliminate existing debt - what they did was reduce the existing debt by only $4k, and took on new debt totaling $681k"
Question - what are the terms of this new $800k financing?
Regarding the A/S 500 million shares (ignore the reverse split for just a moment)....put that amount in context from less than a year ago these comments:
Mr. Daniel: I'll give you some real numbers, Mike. In order to raise $10,000 dollars based on a stock price that's sub-penny, you're talking about upwards of one million shares, or more, in order to get that financing. But, if your stock is trading at $1 a share, you're only talking about 10,000 shares going out in the marketplace. So, the bottom line is that 2013 was our focus on building, and establishing, and doing what we had to do to get to the point where we could do better. Now that we've achieved so many things, it's time to move on to more optimal financing; financing that will not be as diluted, it will not put as many shares in the marketplace, and cleaning up our share structure, bottom line, in order to address the 1.5 billion shares that we have authorized out there, the 800 million shares that are outstanding. And all of these are a part of our growth strategy, and we'll be implementing those steps in the very near future, and just building this business and moving on. But now it's time to attract and to work with financing that's much more favorable to the company, and we're in the process of doing that, even as I speak now.
Mr. Daniel: Yeah. Well, the strategy of the reverse split is, in order to attract the kind of financing that is non-diluted, you have to get your stock price out of the dilution zone, okay? And that's bottom line. And like that example I used earlier, with the $10,000, you have to get your stock price to a point where, first of all, there's value behind that. Because a lot of companies do a reverse split, and it's just kind of a wash, rinse, and repeat cycle, where, you know, they do the reverse and then they keep doing the same diluting of the financing in order to, you know, get money for whatever purposes; building a business, or to pay employees, or pay executives, whatever. So, that's not the right approach. What you do, is that you do the reverse and then you bring value. The value that we're going to be bringing behind, the new stock price will be, first of all, overseas distribution; new distribution deals, sales numbers, okay? New media coverage, new promotional efforts; so, things that create momentum. Because a reverse split that's done and there's no momentum to move the new stock price forward, you're just wasting your time, okay? The other thing is, is that when it comes to dealing with the types of investors and investment firms that we need to get, the reverse split is necessary because 1.5 billion shares authorized, 800 million shares outstanding, that's just not the most attractive picture to the type of investors that can invest capital that tends not to be heavily dilutive, okay? But the only way to do that is you have to reverse those shares out, but also what the company will be doing is lowering the authorized shares from 1.5 billion down to 50 million, okay? And so, that changes the landscape completely, and it gives a much better presentation, it paints a much better picture and it gives a share structure that will make investors feel very comfortable with the fact that there's not a lot of dilution going to be happening, and there's not a lot of shares out there in the marketplace. I believe the number of outstanding shares will be just over 1 million shares in the marketplace. And that's exactly where you want to be, with a very, very tight flowed, and not a lot of outstanding shares. So, the reverse split is just a decision that was made, based on the dynamics of what the company is going to need to do to finance its operations, finance its production, finance the marketing, finance the management team; all of these things going in the near future. So, we're very comfortable with the decision, and we just want our shareholders to just understand that every decision that is being made is being made in the best interest of the company, and at this time the reverse split is exactly the thing we need to do, and it's the perfect part of the solution for the share price issue.
http://www.sec.gov/Archives/edgar/data/1017616/000144586613001444/ex991.htm
My calculations did not factor in these additional notes from the latest financials:
As indicated in the schedule of convertible debentures as of June 30, 2014, several of the convertible debentures are delinquent. We believe we have good relationships with the debenture holders, and continue to have discussions with them regarding the extension of maturity dates. - what they do not state is that implied with an extension of a maturity date is a renegotiation of the conversion price.
To fund our operations subsequent to June 30, 2014, we incurred additional indebtedness totaling $82,500, consisting of convertible debentures totaling $77,500 and short-term advances of $5,000. - terms of the debt were not disclosed.
The numbers also do not reflect the potential conversion of preferred shares which could be a huge number.
Regarding your concern of the $0.0025 convertible notes - the next one is not due until October 1 - so you have 5 worry free trading days....
The derivative liability is adjusted periodically according to the stock price fluctuations and was $1,898,798 at June 30, 2014.
At June 30, 2014, the convertible debentures and related accrued interest payable were convertible into approximately 167,035,000 shares of common stock.
Stating this another way, as of June 30, 2014, the average weighted price of the convertible notes was $1,898,798 / 167,035,000 share = $0.0114/share.
The convertible notes are based on a variable discounted conversion rate. On June 30, 2014, the share price was trading at $0.0349/share. Therefore, one can calculate the approximate conversion rate discount as follows: $0.0114/$0.0349 = 32.57%.
In order to figure out the quantity of possible convertible shares based on the current price (instead of June 30), one would calculate as follows:
32.57% x current share price $0.0165 = $0.0054/share discounted conversion price
Total potential convertible shares = $1,898,798 / $.0054/share = about 353 million shares. One would have to subtract the notes already converted (or paid off with the $9k in doll proceeds) between June 30 and present day. This amount is likely relatively small due to the available notes that are eligible for conversion not beginning until after this month.
So let me get this straight....over the last 4 days, we have had non-stop hype of "bid slapping", "turning points", "about to blast off", "Asher is out HUGE news", "tremendous accumulation", "people claiming to be jumping in all over the place to take a position", "primed for big move", "market maker games", "Quietly accumulate and watch the boom. Multibagger here" and several hundred million shares churned and we still haven't seen the price budge a hundredth of a cent?
Ever wonder why these same posters don't talk about things like...lack of revenue...debt....broken promises on the lack of product follow thru on target dates from the Company...etc?
Just sayin'.....
Correction - 14,700 shares (~$242) - must be the late traders just tuning into their TIVO of the infomercial...er...news piece on FOX....
balamidas - the reference to the solar charger being launched in Q4 is in reference to LAST year. We still have not seen anything new since June 2013, when the CEO announced an alleged order for 158,000 of those units: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=101396181
Even several months ago, there was all the hype about selling a minimum of 2.4 million units - yet the Company has been totally silent on the issue ever since: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99927851
Wonder whatever happened to the "very high number" of accessories they had allegedly touted as being sold back in 2012....?: http://content.stockpr.com/_news/domarkintl/2012-03-20_DOMK_Receives_Very_High_Number_of_Registrations_fo_363.pdf
ducduc1 - with respect to the Simbadeal, have you found out if they ever made good on their initial licensing fee installment payment as well as the 2nd installment payment that was due in July?:
from the last quarterly:
During the three months ended February 28, 2014, the Company executed a Licensing Agreement with Wazzamba SA (the “Licensor”). The agreement provides the Company an exclusive license to use certain technology (which permits third-party subscribers to integrate a fully equipped online shop into their websites) in Canada and the United States for an initial term ending July 31, 2015. The agreement provides for the Company to pay the Licensor “Flat Fee” compensation of $ 300,000 in 3 installments of $100,000 each (first installment payable within 5 days of the signing of the agreement, second installment payable on July 1, 2014, and third installment payable on February 1, 2015) plus “Revenue Share” compensation equal to 50% of Net Commissions generated by the Company payable monthly. In the event that the Company does not generate $500,000 in Net Commissions by January 31, 2015, the Licensor has the right to cancel the agreement with one month notice (in which case the third $100,000 installment will no longer be due). With respect to an Extended License Term after July 31, 2015, the agreement provides the Company a right of first refusal to match any offer received by the Licensor from a third party.
On March 27, 2014, the Company paid $25,000 of the first $100,000 “Flat Fee” installment due the Licensor under the agreement. The other $75,000 due is presently past due.
10,000 dolls would actually be pretty darn good. At an average $6.70/doll gross margin that would cover almost 8% of the quarterly interest expense (currently $848k per quarter)....
Meanwhile....back at the lab.....
The other faux companies set up by Andrew Farmer, Ms. Austin (and her SEC recividist hubby, Eddie Jr.), Robert Federowicz, Thomas Cloud (son of the late penny stock scammer, JT Cloud), Robert Hines, and their trusty lawyer, Kathleen Delaney (and her flunky sister Cindy Morrissey), continue unabated, complete with offshore beneficial ownership companies in the Marshall Islands, Poland, and Panama....inserting their faux CEO/Board of Director minions to take the heat:
FTTN
ASCC
DOMK
NTRR
RBCC
OMVS
QUAN
HORI
BLFR
GTSO
NHLE
RKOS
just to name a few....
Well "sis", perhaps I misinterpreted your post: "Copper bound baby!!" - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=105231142
You will be waiting a long time for "copper"...http://investorshub.advfn.com/boards/read_msg.aspx?message_id=105231142
sorry to say it will be just like others who have had visions of grandeur....
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99988118
yes - 500 million is easier to say than 375 billion pre-split....
Did I also forget to mention the 80,000 shares of Series AA Preferred stock they previously issued themselves convertible at something like gazillion to one common shares? The Series BB is chicken feed compared to the AA Series....
You do realize that 500 million does not include conversion rights for the newly printed 5 million Preferred BB shares which are convertible at 50:1 (i.e. another 250 million....)
The only BB shares issued to date have gone solely to Corinda, Stacey, and Trent - none to outside consultants or for services rendered.
Corinda = 66,000 BB shares (convertible to 3.3 million common shares)
Stacey = 60,000 BB shares (convertible to 3.0 million common shares)
Trent = 60,000 BB shares (convertible to 3.0 million common shares)
Words that come to mind...."staggering"...."breath taking"...."incredulous"...."flabbergasted"...."dumbfounded"..."naive"....."perversive"...
OWOO Quarterly Results
Here are a few observations of the latest 10Q -
Cash on hand dwindled down from $4371 to $117 for the quarter (time to cash in the Happy Meal Coupons...)
Total assets over the quarter, including nominal cash noted above, got reduced from $470k to $376k (a reduction of 20% loss on assets)
Total Liabilities increased by $368k (an increase of over 8% bringing the total up to over $4.8 million)
Good news on the sales front, jumping to $27k in gross sales, resulting in a net positive margin after cost of sales of 33% (or $9k). Note: using the HEB sales price of $19.99, the gross margin on each doll translates into $6.70/doll.. Using the price range of $19.99 (HEB) to $24.99 (doll genie), the company racked up anywhere from 1075 to 1344 dolls sold for the quarter.
The not so good and rather ugly news: Loss from operations, including selling, G&A, R&D, and Depreciation jumped from $551k the previous quarter to a whopping $3.9 million for the most recent quarter - putting it another way, the Company spent anywhere from $2922 to $3650 per doll to attain those stunning sales figures!
OWOO is racking up payment of these debts by issuing convertible debt. For the quarter, the Company states that "At June 30, 2014, the convertible debentures and related accrued interest payable were convertible into approximately 167,035,000 shares of our common stock" - this compares to "only" 22.2 million for the previous quarter - a jump of 650% giving new meaning to the "Dilution Zone". Subsequent to June 30, 2014, they incurred additional indebtedness totaling $82,500, consisting of convertible debentures totaling $77,500 and short-term advances of $5,000.
On another sober note...Interest Expense is beginning to be the new albatross for the company - from the last quarter, interest expense has doubled to $848k for the current quarter. On top of that, the company incurred a $584k loss on a debt settlement (yikes!).
Probably the most important indicator of the health of the Company is the working capital deficit of $4.5 million, racking up the accumulated losses from inception to over $14.4 million. The working capital deficit is real money the company needs to come up with to continue executing their business plan. The only way to do this, not including the diminimus contribution of the doll sales, is to issue yet even more convertible shares. Lather, rinse, repeat....the company in fact states: "We believe that our operating expenses will increase over the next 12 months and estimate that our capital requirements for the next 12 months will be exceed $1.5 million" - however, also in the quarterly report, it states: "As indicated in Note 5, several of the convertible debentures are delinquent as of June 30, 2014."
The company is also issuing 5 million newly minted Series BB Preferred Stock (convertible at 50:1 common shares) to further alienate existing shareholders.
Much appreciated!
Carolyn Austin's other buddy, Robert Hines, is still running the same type of sham at OWOO. OWOO was founded by convicted felon, Trent Daniel. Carolyn is the wife of Eddie Austin, Jr., who is already disbarred from penny stocks. The Austin's are long time close friends with SEC recividists and convicted felons, Darrel and Jack Uselton.
Andrew Farmer is also behind Infinite Funding, having run yet another sham over at DOMK
FYI - Andrew Farmer, principal owner of Infinite Funding (long time financier for DOMK operations), is back in the news:
http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542654953#.U-5bWul0yB9
Just as a side note, Carolyn Austin, one time Convertible Note holder at OWOO, and long time friend of OWOO Director, Robert Hines, is back in the SEC news: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370542654953#.U-5bWul0yB9
Under a penny (again)...re-starting the 30 day pinksheet clock....
Strong close??? Are you referring to the $30 spent on 1000 shares or the other 3 trades made earlier in the day for grand total of $705???
QS - yes, "one to watch" indeed....getting paid $25,000 for 150 days of promotion...that ought to get us right up to the Christmas shopping season....let's see, if we can get a 20% margin on each doll (about $4/doll), we only need to sell $125,000 in gross doll sales to pay for this promo....we may have to wait awhile though...total doll sales for the last 6 months were only about $23k, and the net margin was <gulp> negative last quarter....
Sub-Penny we go....onto the Pinksheets in 30 days if they fail to get back above $0.01: https://otcbb.com/news/EligibilityRule/eligrulepressrel.stm
How's that Oilfield Trucking / Aviation Services acquisition / Motor Sports Travel / Logistics Network / Naples Connection / "still no revenues plan" going?? Add the latest fluff "plans to do something really exciting" business line to these:
1. Custom Mobile Audio Stereo systems
2. Printable solar panels
3. Wireless service in South America
4. Pursuit of Government Incentives for various business models
5. Bikini Clad, Drunken Women Reality shows
6. Penny Auctions
7. Chinese Markets
8. Mobile Apps
9. Protection and Security Systems
10. Facial Recognition Services
11. In-vehicle Emergency Responder devices
12. More mobile apps
"...do you expect last of debt notes getting reduced/over soon...?" - No. As stated in my post regarding the convertible debt train - my figures were current only as of Feb 28 (plus subsequent events thru April 14) - a lot of time has passed and those figures are likely pretty stale - especially in light of DOMK's Canadian launch and promises to launch here in the U.S. - very likely there have been a significant number of additional convertibles executed since last February - the timing of when they become due is really the only question in my mind.
Wait...I thought the dead bottom was $0.0012?: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104037846
Or was it $0.004?: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=101947924
Or was it $0.006?:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=100533224
Why? Is there a reverse split coming?
Correction - at the most recent low share price of $0.0004, the conversion would equate to 2.5 billion shares, not 2 billion. Irregardless of the quantity, the weighted average discount to market price is 38% - meaning that on average, the toxic convertibles will be done at a price that is 62% less than the going market price. Due to the volatility of the stock price, they have a huge incentive to liquidate immediately upon conversion.
Correct - and here is a summary:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=104326765
CTXED shows no filings on the OTCMarkets.com website: http://www.otcmarkets.com/stock/ctxed/filings
nor are they shown on the Nasdaq.com website:
http://www.nasdaq.com/symbol/ctxed/sec-filings
nor is there any indication of the stock split: http://www.nasdaq.com/markets/upcoming-splits.aspx
nor are there any filings shown on the OTCbb.com site:
http://www.otcbb.com/asp/Info_Center.asp
If a rep from CTXE/Arkose is telling you the filings are forthcoming, I suppose we can wait and see...until then...same ole same ole....
No filings shown - please provide the link: http://www.otcmarkets.com/stock/ctxed/filings
.0016? Is that why you were telling people to get in at .0014?: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=102878860
Yet another Rohde family scam....do your research on SEC suspended GSLO and other shams these guys run.....
http://www.hotstocked.com/article/63322/blue-fire-equipment-corp-otcmkts-blfr-wakes-up.html
Unfortunately, the debt conversion train will keep coming. At today's low of $0.0005/share, the remaining $389,700 of convertible debt shown in the last quarterly statement (ie does not include any subsequent debt notes), will convert into over 2 billion (yes "billion") shares. The breakdown by month at this conversion rate is shown as follows:
August = 237 million shares
September = 175 million shares
October = 369 million shares
November = 352 million shares
December = 250 million shares
February = 647 million shares