Tonner One World Holdings Inc (TONR)

[Voices of Reason]

10K Facts and Figures:

2013 to 2014 O/S increased from 21.8 million to 251.3 million, an increase of almost 1050%

Notwithstanding the recent run-up for those fortunate enough to have flipped this, long term shareholder value has seen a year over year price (April 2013 to April 2014) decrease from $0.135 to $0.00427, a drop of 96.8%. Even Donna Harvey is likely back in the red as her average cost for her 45.3 million shares was last reported to be $0.00524 (http://investorshub.advfn.com/boards/replies.aspx?msg=112045967), leaving her about $44k in the hole.

Despite alleged reports that lawsuits were settled, the Company notes that "As of December 31, 2014, several of our convertible debentures were delinquent.". The two known lawsuits (WHC Capital and Darling Capital), are both still "active" according to the New York State Court online records.

Insufficient Number of Authorized Common Shares
As of December 31, 2014, we had several convertible debentures and related accrued interest payable that were convertible into approximately 1,900,000,000 shares of our common stock. We had 500,000,000 common shares authorized and 170,767,039 common shares issued and outstanding. We will be required to increase the number of authorized shares of common stock in the event all convertible debt is converted into shares of our common stock.

New convertibles - toxic or not - you decide:
During the fourth quarter ended December 31, 2014, we issued a total of 141,331,647 unregistered shares of our common stock to lenders underlying convertible debt, pursuant to convertible debentures (each a “Debenture” and collectively the “Debentures”) of $188,788 and accrued interest payable of $12,922. This equates to a conversion price of $0.00143/share

Since December 31, 2014 through the date of this Annual Report, we have issued at total of 80,486,541 unregistered shares of our common stock to lenders underlying convertible debt pursuant to convertible debentures (collectively with the aforementioned Debentures, the “Debentures”) of $59,925 and accrued interest payable of $1,570. The Debentures mature either six months or one year from issuance and bear interest at rates ranging from five percent (5%) to sixteen percent (16%) per annum. The Debentures are convertible into the Company’s common stock at rates ranging from $0.0015 per share through $0.07 per share, with several of the Debentures having a conversion rate based on a 50% discount on the ten or twenty-day trading average of the Company’s common stock prior to conversion.

During the fiscal year ended December 31, 2014, we did not repurchase any of our securities. - Plans change.....http://investorshub.advfn.com/boards/read_msg.aspx?message_id=97529756

The Company has a working capital deficit of $6,027,776 at December 31, 2014. This is a 66% increase from the previous year.

The Company had an accumulated deficit of $16,661,742, up from $9.7 million the year before,an increase of 71%


The good news is that sales increased from $20k to $110k (a 433% increase). It should be noted that 2013 sales were only started in the 4th quarter - so not really an apples to apples comparison. The cost of sales also increased by a proportionate amount (414%), reflecting the increased costs were linear with sales. Gross profits were up slightly from 20% to 22.7%., yielding about $25k for 2014.

The bad news is that the selling, general and administrative expenses increased $848,087 to $4,174,904 in the year ended December 31, 2014 from $3,326,817 in the year ended December 31, 2013 (an increase of over 25% not including R&D and Depreciation). Putting it another way, the company spent about $168 in G&A for every dollar in gross profit they made.. All of this done while increasing their working capital deficit AND increasing the O/S's.

Interest expense increased to $1,622,701 in the year ended December 31, 2014 from $619,236 in the year ended December 31, 2013 (an increase of 162%). Putting it another way, the company is spending $65 of interest expense for each dollar of gross profit margin they receive.

The Company's capital requirements for the next 12 months will exceed $1.5 million.

Robert Hines, former CEO and president of SEC suspended EVSO is still on the Board of Directors: https://www.sec.gov/news/press/2011/2011-120.htm

Cash on hand = $604 and some HEB Buddy Bucks...

Convertible notest:
The good news is that the company appears to have successfully reduced 19 of the "old" notes by $486k, leaving $514k for the remaining 27 "old notes".

The bad news is that the company has entered into 48 "new" convertible notes, adding an incremental $1.435 million to the tab.

For those arguing that for penny stocks, financials "really don't matter" are ignoring the fact that the need for cash results in more convertible debt being issued, which directly affects the stock price. The over hang of 1.9 billion (yes "billion"), will have a direct affect on the stock price when converted.

Remember - it was never about doll sales.....