iTalk Inc. (fka TALK)

[Tesla_se]

My DD indicates Powerup Lending arranged the defective inventory shipment from TechData which led to cost overruns which led to the guaransheed funds and destroyed everyone's Christmas.

I think most of these contracts in the reports are being cleared up in ch.11:

On June 10, 2016, the Company filed a Current Report on Form 8-K to disclose, among other things, that the Board of Directors of the Company had concluded that the UMS Financial Statements should no longer be relied upon.


NOTE 11 – SUBSEQUENT EVENTS


On February 4, 2016 a complaint on contract was filed by ProcurePal, LLC in the State court of Gwinnett County, State of Georgia against the Company. (Case 16-C-00639-S2) The Complaint claims the Company owes the plaintiff $431,405 for product shipped to the Company during January 9, 2015 through March 23, 2015 and not paid for by the Company. The plaintiff seeks judgment for the principal amount plus interest at the rate of 1.5% per month. Plaintiff garnished the Company’s account at Bank of America on May 13, 2016 in the amount of $43,305. The amount owed is included in the short term financing and capital lease obligations of the accompanying combined balance sheet. Management is uncertain of the outcome of the suit.


F- 14




On March 11, 2016 the Company entered into a revenue based factoring agreement with PowerUp Lending Group, Ltd.(“PowerUp”) Under the terms of the agreement the Company received $100,000 for the purchase of $131,000 of future receivables to be repaid by weekly repayments of $3,899. If the Company has an outstanding balance due PowerUP, any additional financing by the Company must be with PowerUP or be approved by PowerUP. Management is uncertain of the outcome of the suit.



On March 16, 2016 a complaint on accounts and contracts was filed by Nowaccount Network and Small Business Credit Cooperative, Inc in the State court of Gwinnett County, State of Georgia against the Company and its President as a guarantor. (Case 16A-02623-4) The Complaint claims the Company collected $54,849 in payments on accounts receivable sold to the plaintiff and paid the plaintiff $25,460. The plaintiff further claims the Company continues to collect payments on accounts receivable sold to the plaintiff, having collected a total of $73,193 and that being the amount being sought by the plaintiff. The plaintiff has requested a receiver of the Company be appointed to protect their interest. Under court order, funds in the amount of $ 38,136 where deposited in the court registry of the Superior Court of Gwinnett County, Georgia on April 27, 2016. As of December 31, 2015, the Company has included$73,193 in the accounts payable of the accompanying combined balance sheet. Management is uncertain of the outcome of the suit.



On April 14, 2016 a complaint on contract was filed by Curve Commercial Services, LLC in the State court of Gwinnett County, State of Georgia against the Company. (Case 16-c-01388-86) The complaint claims the Company owes the plaintiff $896,235 plus interest of $143,643 through March 14, 2016 plus continued interest calculated at 1.5% per month al outstanding balances on money the Company borrowed as inventory financing. As of December 31, 2015, the Company has included $1,039,878 in the short term financing and capital lease obligations of the accompanying combined balance sheet. Management is uncertain of the outcome of the suit.



On May 25, 2016 the Company entered into revenue based factoring agreement with PowerUp Lending Group, Ltd.(“PowerUp”) Under the terms of the agreement the Company received $85,000 for the purchase of $119,000 of future receivables to be repaid by weekly repayments of $4,722. The credit require the payment of an origination fee of $1,700 being paid to the lender and$34,473 being applied as full payment on the balance of the credit from PowerUp dated March 11, 2016. The credit is secured by assets of the Company and guaranteed by Italk, Inc, the Company’s parent.



On June 22, 2016 a complaint was filed by Moin Telecom, LLC in the State Court of Texas, Denton County against the Company (Case 16-04914-367). The complaint claims the Company has failed to pay commission owed the plaintiff for the months of February and March, 2016. The plaintiff further claims the Company had agreed to buy the store location held by the plaintiff but later withdrew from their agreement. On March 31, 2016, the Company notified the plaintiff that, effective April 15, 2016, the sub dealer contract to which the Company and the plaintiff were parties was terminated without recourse due to numerous violations of the agreement by the plaintiff, including but not limited to: (i) failure to meet plan objectives and performance metrics; and (ii) inadequate staffing, improper hiring practices and deficient employee administration. The plaintiff is requesting the recovery of $231,663 in damages against the Company. Management is uncertain of the outcome of the suit.



http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11473727