Tonner One World Holdings Inc (TONR)

[Voices of Reason]

There has been a lot of talk regarding the progress the Company has made towards reducing or eliminating debt. In fact the Company has made public press releases touting new infusions of cash that would "reduce and eliminate" the debt, and that they had already made great strides in this effort during the 4th quarter of the year and would continue into 2015.

Factually, the company did reduce the "old" notes by $486k which is in line with promises they made to cut it roughly in half.

However, when looking at the 10K, this burden has simply shifted to new notes, and has actually increased in total dollars due by another incremental $1.435 million.

One might argue, yes, but all companies need capital to expand and grow their business, and that the "new" notes are on more favorable terms (ie "not as toxic").

Let's look at the actual progress made by the Company - direct from the 10K:

"At December 31, 2014 and 2013, the convertible debentures and related accrued interest payable were convertible into approximately 1,900,021,000 and 7,963,000 shares of our common stock, respectively."

From this statement one can see that the convertible shares have grown exponentially from just under 8 million shares to a whopping 1.9 billion shares (somebody calculate that percent increase for me, my calculator is smoking....) that is a potential conversion. Both the dollar amount and the convertible share amount have substantially grown - neither trend is indicative that the Company is trying to pay down debt nor trying to get convertible notes on more favorable terms.