Wialan Technologies Inc (WLAN)

[Inorout]

I have been examining the Quarterly Report and it seems that Mike Connor and Tim Peabody owe WLAN money for commitments made when funding the reverse merger. To follow along, please first review WLAN's Annual Report filing for 2013, filed with OTC Markets on March 24. On the pages starting with the Consolidated Balance Sheet, the pages are numbered at the bottom, and please reference Page 12 under Accounts Receivable Net.

Here it states that Mike Connor still owed the company $120,000. This was the remaining balance on the $300,000 commitment, and in exchange for the $300,000 commitment, he got 380,000,000 shares. It goes on to say that the balance of $120,000 still owed by Mike Connor was due to be paid over the first 5 months of 2014.

$24,000 X 5 months = $120,000

http://www.otcmarkets.com/financialReportViewer?symbol=WLAN&id=117622

Now, if we go on and take a look at WLAN's next filing, it's 1st Quarter Report filed on May14th and linked below, on page 13 under Accounts Receivable Net, it states that that Mike Connor still owed the company $72,000 but says the commitment is due to be paid at a rate of $24,000 during the second quarter. This is material different than what was previously stated in the Annual a Report.

But even more interesting, is that under the verbiage about Mike Connors balance, suddenly we learn for the first time that Tim Peabody owes the company $28,500. And this $28,500 balance is owed WLAN on Tim Peabody's original commitment of $50,000. If Peabody got 5% of the company for $50,000 that places a value on WLAN of $1,000,000. Obviously a valuation much much lower than WLAN's current valuation.

http://www.otcmarkets.com/financialReportViewer?symbol=WLAN&id=120619

So it appears to me that sometime in the 1st Quarter, Peabody got 5% of WLAN for $50,000 but only put up $21,500 for the 5% stake, and still owes $28,500.

Which finally brings us to the 2nd Quarter Report filed today. And if you check Accounts Receivables Net on Page 13 linked below, you can see that Mike Connor has stopped his payments for the balance owed for his equity. Because if you recall, back in the Annual Report, the balance Mike owed was to be paid over 5 months at $24,000 per month. Money owed from him remains unchanged and he still owes $72,000.

Additionally, people can see that Tim Peabody still owes $28,500.....same as he owed months ago

So, it sure looks like Mike Connor stopped paying WLAN because his balance should have been paid in the first 5 months of 2014, and it looks like Tim Peabody still hasn't paid up for the commitment of shares he made.

Just don't know why Peabody and Connor still haven't put any more money in, even though it appears to be past due, or WLAN changed the terms.

http://www.otcmarkets.com/financialReportViewer?symbol=WLAN&id=125265