Update to OWOO Quarterly Results:
Shares outstanding (Dec 12, 2014) = 151,433,163 (an increase of 126 million or 500+% since the last quarterly report)
Total Liabilities = $5.9 million (an increase of over $1 million or 21% since the last quarterly report)
Accumulated deficit = $16 million (an increase of $1.5 million or 11% since the last quarterly report)
The good news – Operating/G&A spending has slowed to $648k for the quarter compared to $2.5 million for the previous quarter.
The bad (more like horrendous) news - Sales were a meager $5692 on cost of sales of $13,988, resulting in a negative gross margin of ($8296). This compares to the previous quarter sales of $26,875 and a net margin of $9012. The Company explains that the low levels of sales or promotional pricing of our dolls can result in these costs exceeding our sales in any particular period [duh!].
Total sales for the 1st 9 months of the year were $34,860 on cost of sales of $34,861 resulting in a NEGATIVE $1 for the year.
Interest expense is still killing the company at $465k for the quarter, and the loss on derivative liability exploded to $514k – these other expenses totaled $911k on top of the operating expenses.
The working capital deficit (i.e. the immediate money the company needs to run its business which measures the true health of the Company), is now at $5.4 million (up from $4.5 million or up 19% from the last quarterly statement.
At September 30, 2014, the convertible debentures and related accrued interest payable were convertible into approximately 241,019,000 shares of our common stock. As of September 30, 2014, several of the convertible debentures are delinquent.
Stockholder advances continued to mount and is now up to $544k.
On June 19, 2014, 20,000 shares of Series AA Preferred Stock were issued to each of the four members of the Company’s Board of Directors – these 80,000 shares have voting rights of 10,000:1 common shares – in other words they have effectively given themselves the voting power of 800 million shares.
On August 15, 2014, a total of 186,000 shares of Series BB Preferred Stock was issued to two officers and one of our founders upon their surrender of a total of 9,300,000 shares of common stock. These shares are convertible into 50 common shares each (or basically an even swap) – however, these have preferential rights over common shareholders now.
On May 12, 2014, the Board of Directors of the Company adopted and approved the One World Holdings Inc. 2014 Stock Option and Stock Award Plan (the “Plan”). A total of 2,000,000 shares of our common stock are available for issuance under the Plan to the World Class Management Team for their ongoing stunning financial performances.
The company paid out $570k during the quarter to consultants – of which Trent received $50k, and other family of officers and directors received $85k. Remember, the company gross sales (before cost of sales) was only $5.6k
To fund our operations subsequent to September 30, 2014, we incurred additional indebtedness totaling $68,000, consisting of convertible debentures totaling $50,000 and stockholder advances of $18,000.
Subsequent to September 30, 2014, we issued a total of 19,433,774 shares of our common stock for debt conversions of $34,825 (yikes – converted at $0.0018/share!!).
On November 4, 2014, we were named as a defendant in a civil lawsuit filed by Darling Capital, LLC, (“Darling”) a creditor of ours, in the New York Supreme Court, County of New York. The plaintiff filed a Motion For Summary Judgment in Lieu of Complaint the same day. The plaintiff alleges, among other things, that we defaulted on our obligations under a Convertible Promissory Note held by Darling. The complaint seeks, among other relief, judgment against us in the amount of $57,627. We are currently evaluating a response to this motion and intend to defend our interests vigorously. Default judgment being sought by Darling on a scheduled court date next week, Dec. 23 at 9:30am in NY.
Breach of Contract Lawsuit filed ion Dec. 3 n NY: WHC Capital LLC v. One World Holdins, Inc. WHC is seeking action for OWOO's failure to deliver +22.5 million shares on two convertible notes for $40,042.60 and $25,000 respectively. Damages of $416,000 are also being sought after.
We do not have sufficient cash at September 30, 2014 to fund future operations - ya think??
