Tonner One World Holdings Inc (TONR)

[Voices of Reason]

The point of mentioning the $739 is to show that even the most recent quarter they are selling the dolls at a loss. For the previous annual report, the entire year the gross margin was break even (actually negative $1). Making a million dollars (or tens of millions) sales to Walmart, Target, Amazon, Overstock.com...etc....really doesn't matter if the cost of sales equals or exceeds the price they are selling them for, while simultaneously racking up several million dollars worth of new convertible notes to pay for ongoing operations, overhead, G&A, interest expense, inventory, etc....

Some have argued that these initial sales were loss leaders to get their foot in the door. I would have to agree...and in fact would even venture a guess that is the same mode of selling to get into +/-2900 Walmart stores - these initial sales will be break-even or just marginal at best.