Tonner One World Holdings Inc (TONR)

[Voices of Reason]

Nope - nice try though. The R&D component of the loss was relatively small ($93k for the quarter). The $1.5 million operating loss for the quarter comes primarily from G&A, interest expense, and dealing with the toxic notes - these are not "onetime expenses" and are ongoing in nature.

The negative margins are a result of selling the dolls at a price that is less than what it cost to make them. Selling more ($1.1 million) at a negative margin will not help "balance out" the proportionate increase in G&A, interest expense, and even more convertible notes.