Labor Smart Inc (LTNC)

[sobe4life]

ME WRONG? NOT YET!!!

cpw13154

SOBE YOU ARE WRONG the tax debt was over a million dollar's add the 3% interest and the number of payments and its easy to see for even us poor trailer park people we are talking 1.6 million. IF we disagree then please tell us what you think the debt is!

Well, I absolutely disagree with the statement Labor SMART owes the IRS $1.6 million dollars and this is why....

If a person goes out to buy a house and borrows $500,000 from the bank then they owe the bank $500,000. I don't think you ever hear anyone saying I borrowed $500,000 from the bank but I owe them $940,000. The fact is, what you borrow is what you owe. What you ultimately pay back will be defined by whether you elect to pay out all the principle and interest over time and how long you intend to make the payments.

Labor SMART essentially has an agreement with the IRS similar to a loan. There are many variables that should come into play that would allow them to pay off the Agreement well before the agreed upon term. If we were to call the IRS for a payoff amount they WOULD NOT say its $1.6 million, so to say that LTNC owes the IRS $1.6 million dollars is incorrect!

cpw13154

As for that's the only way OTC company's can borrow money. Why does this company even need to borrow money in the first place. You claim they have millions.

First of all, LTNC would not be putting out the numbers they have been if it weren't for the monies they borrowed for growth and working capital. Second, the monies they currently have will be needed in order to reinvest for future growth.

With the conversions taking place on a going forward basis, Labor SMART is now on the path of becoming debt free. Additionally, $4 million in debt for a company producing $25 million in revenues and running with positive EBITDA falls well within their ability to run efficiently.