Tempus Applied Solutions Holdings Inc fka TMPS

[lloydm]

8-K was expected due to company non payment to TMPS. https://backend.otcmarkets.com/otcapi/company/sec-filings/12436404/content/html

On November 22, 2017, we notified one of our customers that the Company was terminating an aircraft management agreement with them due to their on-going and repeated failure to make payment in full of all amounts due under the contract. The contract represents a material portion of our consolidated revenues ($4.0 million for the first nine months of 2017), but has not contributed significantly to either our consolidated gross profit or net profit. The contract also has not contributed significantly to net positive cash flow from operations, since margin on the contract is very low.



We have informed the customer that we would seek damages for losses and expenses in light of their repudiatory breach of the contract. Depending on the outcome of negotiations with the customer, and possibly litigation, the receivables owed to us for services rendered, together with damages, would be applied against the operating deposit of $750,000 to be repaid to the customer following contract termination. The final amount to be repaid to the customer, or which would be due to us by the customer, will depend on the results of negotiations with the customer. In the event the negotiations do not lead to an agreement, litigation may result. See “Our early termination of a material services contract will reduce our revenues, require repayment of an operating deposit, and may lead to litigation.” under “Risk Factors” above.