If it pleases you to have and share a particular perspective or way of looking at the balance sheet figures, then so be it. But as regards the manipulation of words, in light of the intention to clear up the play on words here, let us just state clearly what was discussed, shall we?
Yoda stated : "Well, $700k of financing was used to get rid of all debts for the company as well as providing operating funds to get the company where it is today."
BeauBeau stated : "When a company like RFMK shows a cumulative deficit of Nearly $10M (2011) do you really believe that a mere $700K is going to provide working capital and pay off "ALL DEBTS"
The definition of "Debt" is, "Something, typically money, that is owed or due", "The state of owing money". When you refer to "ALL DEBTS" I assume you are speaking about figures on the balance sheet which represent sums of value/money which are "owed". The "cumulative deficit of Nearly $10M..." is NOT "owed". 
What you are talking about when refering to any sums of money that is effectively "owed" or else a state in which the company owes more than what they OWN, is basically the definition of ... the "stockholders deficit". Look it up. If you want to discuss what would be "owed" by the company to shareholders if the company was to close up shop today and no longer be a corporate entity, then what would be "owed" would be the difference between the shareholders paid-in capital and the accumulated deficit (what you referred to as the "cumulative" deficit of "$10M"). If you actually were to read the RFMK filing it states clearly that the paid-in capital was about $8.8M and the accumulated deficit was about $9.5M which equals a "stockholders deficit" of about $700k. Low and behold, that $700k figure is exactly what Ironridge allowed the company to wipe off their balance sheet via the INITIAL funding deal. Do I think that a "mere $700k IS GOING TO..." provide working capital to pay off what is "owed"????! YES! IT ALREADY HAS! The company basically "owes" $3k. I believe the second part of the funding deal ($50k/month) will provide working capital going forward.
As another example, let us look at a similar stock, in the MMJ industry, $CBIS. CBIS balance sheet shows a paid-in capital of about $86M and an accumulated deficit of about $84M therefore in their case the "stockholder deficit" is actually a surplus, not a deficit, which is why the figure on their balance sheet is in brackets; a double negative, if you will. Basically if the company were to be closed down today, there would be about +$2M going to stockholders. In the case of RFMK, there is a NEGATIVE BOOK VALUE, so there would be about $3,000 still "owed"; though of course shareholder are not liable so the corporate entity would just write it off and the creditors would take a tiny hit IMO.
Hopefully this helps clear away the play on words so that those not bright enough to succumb to such manipulation of words can really understand where the spin zone is coming from here. 
The dark side clouds everything. You must unlearn what you have learned.
GLTY
$RFMK
