Labor Smart Inc (LTNC)

[DD2Gain]

Ok...I'll bite one last time.

For the impending libel suit:

January 13, 2014
Ryan Schadel said, "Labor Smart is 100% current on ALL tax reporting requirements."

May 12, 2014 the 2014Q1 report is released stating:
"On March 17, 2014, the Internal Revenue Service agreed not to take collection action against the Company for payroll tax liabilities as long the Company remains current and makes monthly installments against outstanding liabilities. The agreed monthly installments are $5,000 which increase to $10,000 on July 28, 2014 which further increase to $15,000 on July 28, 2016."

That's $260,000 owed before $15,000 per month kicks in starting July 28, 2016 until who knows when. All that for payroll taxes owed only through some time BEFORE March 17.

Compare the 2013 10K to the 2014 Q1:

2013 10K Cost of Sales: $13,953,122
2013 10K Payroll Expenses: $1,620,859
2013 10K Payroll Tax Payable: $1,487,907

2014 1Q Cost of Sales: $3,685,229
2014 1Q Payroll Expenses: $443,654
2014 1Q Payroll Tax Payable: $1,397,063

Your honor, I rest my case.