Tonner One World Holdings Inc (TONR)

[Voices of Reason]

Authorized (common) shares currently stands at 50 million as reflected in the latest 10K. Here is where it gets confusing:

The 10K states that the authorized shares reflect the 1:750 R/S effectively changing the authorized shares from 1.5 billion to 50 million. However, doing the straight math: 1.5 billion divided by 750 = 2 million. Somewhere in the mix, the authorized shares got increased another 48 million (50 million minus 2 million) during the conversion. Does this make sense to anyone?

Furthermore, when you pull up the previous 10Q filing, it states that the authorized shares were 700 million (pre-split). Somewhere between that 10Q (7/31/13) and the latest 10K (12/31/13), the authorized shares increased to 1.5 billion - yet there is no accounting entry in either financial filing showing the increase.

Going back further in time in 2013, another 10Q shows the authorized shares at 200 million as of 3/31/13. Again no mention of how they got to 700 million 6 months later.

Can anyone help explain the convoluted math on the outstanding shares?

Regarding the preferred shares, the 10Q for 6/30/13 shows "Preferred stock: $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding" and another entry showing 200,000 preferred shares being unissued and on the books as a $200 deficit (200,000 x $0.001). It is unclear why the entire 10 million preferred shares x $0.001 was not shown on the books. Fast forward to the most recent 10K and we see that the preferred shares were not split: "Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares issued and outstanding" - the good news - no shares have been issued, but the bad news - they were not split.