In regards to ITKH and TCA read below
Earnings
Another outstanding achievement is that our subsidiary, Big Rhino Agency, under the leadership of CEO Kyle Eng, achieved an operating profit of 7% for the second year in a row. Overall iTeknik shows a net loss of $934,573 for the 12 months ending December 31, 2018. This loss includes $900,000 in disputed interest charges that iTeknik did not pay but has accrued on its books pending the outcome of its litigation with TCA Global Fund. Management believes that the Company will prevail in litigation and a major portion of the accrued interest will not be paid. In addition, the loss includes $88,155 of extraordinary legal expenses that the Company did pay. Without these extraordinary expenditures iTeknik would have made a net profit of 1.6%. What is encouraging about our profit situation is that in the last seven months of 2018 iTeknik averaged 4.3% net profit and posted a December net income of 6.2%, excluding disputed interest payments and extraordinary legal costs.
Management believes there are factors that will continue to support revenue growth and earnings improvement. First, Big Rhino is expected to continue to grow and increase its operating income. Secondly. Management expects its ligation with TCA to be resolved in 2019. This would allow the Company to implement its strategic plan and seek additional acquisitions. Acquisitions can provide iTeknik with the economies of scale that can help to increase earnings.
2019 Focus
First and foremost, Management will focus on its dispute with TCA Global Fund. Management expects either to prevail in court or reach an amicable resolution through settlement negotiations. Once this dispute is settled the company will be able to complete the audit started in 2017. After the audit is complete the Company will seek to become fully reporting as an OTC QB designated company. As an OTC QB company, Management is confident it will be able to secure the financing to acquire other advertising agencies.
