Tonner One World Holdings Inc (TONR)

[Voices of Reason]

Comments on todays 8K:

One first needs to refresh recent hisotry - from the Sept. 24, 2014 press release regarding a new $800,000 equity loan, Ms. Melton stated the funds would be used specifically as follows:

"By the end of the 3rd 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,"

http://finance.yahoo.com/news/one-world-doll-project-announces-130311461.html

Three weeks later, on Oct. 15, Ms. Melton entered into a settlement agreement with Darling Capital to eliminate their debt (thus avoiding flooding the market with millions of shares) at a substantial discount (22% off what was owed) in exchange for a small ($45k) payment by Oct. 24 (nine days later). At that point in time, one would have to say Ms. Melton was apparently following thru on her commitments made in the Sept 24 press release.

Yet a mere nine (9) days later, on Oct. 24, Ms. Melton yet again was in breach of contract and failed to pay Darling the agreed $45k settlement - despite the fact that she was suddenly flush with an $800k cash infusion.

On Nov 12, the 10Q quarterly report was filed indicating the 3rd quarter results. No mention of the $800k loan, no apparent reduction of the $415k of expensive loans, and no reduction of debt.

With today's 8K, they state that the ($800k) equity has "allowed us to retire substantial amounts of convertible debt over the last six months and we anticipate being able to continue this trend throughout the first and second quarters of 2015" - yet we see no evidence of it for the 3rd quarter in the last 10Q. Perhaps all of this happened in the 4th quarter - yet Ms. Melton seems a bit more vague now....pushing the undefined target into possibly the 2nd quarter of 2015 - much like President Obama does...kick things down the road a bit...see if they notice.

"As our revenues continue to grow, the business expenses will also increase." - well....to be fair, unless they are selling zero dolls, revenue will always increase over time - what is important is looking at the trend. 1st quarter gross sales revenue were $2293, 2nd quarter gross sales improved to $26,875, however 3rd quarter fell to a meager $5,692...not exactly the picture they want to paint with decreasing sales quarter over most recent quarter. More importantly, the business expenses are growing at a much more rapid pace than the revenue stream - this is opposite of what needs to happen.

"we are on a clear path to success and attracting more long-term equity investors." - yet, despite this proclamation and last week's rise, by any measure of "long term" the stock price has dropped straight down.

"we encountered unfair, deceptive and/or manipulative conversion and trading practices with some of these lenders, and have taken certain measures to protect the stockholders from this type of activity." - translated: we defaulted on our loan and a discounted settlement agreement and got sued (twice).