Tonner One World Holdings Inc (TONR)

[Voices of Reason]

Excellent post - thanks for the rational and reasonable questions/conclusions drawn.

I am also a bit concerned that Founder Trent Daniels is not considered an employee, yet gets paid both a salary as well as consulting fees.

In general fairness, the Company appears to have been making a reasonable kick off of sales - no one can expect sales of "millions of dolls", and selling about 1000 in the first couple months seems pretty good for an unknown, considering there was no holiday advertising blitz that I am aware of.

The red flag for me is the excessive compensation - McBride-Irby got $429k in cash and stock, while Corinda got $523k - all for $4k+ in gross profit....really??? Add to that another $238k to Hines and Delaney....for what value did they bring to the company? And then there is Trent... $477k! That does not include marketing of the product, interest expense on debt, costs to set up manufacturing and shipping....GESH! This is supposed to be a start up - how about a little fiscal sacrafice (fiscal sanity??) in order to make the company grow??

The other red flag for me is the huge increase in shares -- if we were talking pre-split, the increase would have been 15.5 billion shares issued in the last quarter - staggering by anyone's measure - thankfully, the 1:750 R/S masks that number into a mere 20 million shares post split.

Noticeably absent (or maybe someone can explain it to me as I cannot find it) is the most recent $500k private equity financing - wouldn't this have been noted as a subsequent event worthy of noting in the 10K?