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Replies to post #57998 on Triple 000 and Sub-penny Chart Plays
Revenues
Total revenue increased by $558,378 to $564,098 during the nine months ended May 31, 2014, as compared to $5,720 for the nine months ended May 31, 2013. The overall increase in revenue during 2014 as compared to fiscal 2013 is primarily attributable to revenue generated by acquisitions.
Network service revenue increased $558,378 during the nine months ended May 31, 2014 as compared to 2013. The increase is primarily attributable to the acquisition of ITG.
We do anticipate that both new acquisitions and organic growth of existing acquisitions will be a continuing source of revenue in the future.
On May 27, 2014, the Company issued 4,939,760 shares of its common stock as collateral in connection with the continuing litigation with IBC Funds (see Note 12). The common stock was recorded at par value in the Company’s financial statements.
The accounting treatment of derivative financial instruments requires that the Company record fair value of the derivatives as of the inception date of settlement agreement and to fair value as of each subsequent reporting date which at May 31, 2014 was $604,532. At the inception of the settlement agreement, the Company determined the aggregate fair value of $631,220 of the embedded derivatives.
The fair value of the embedded derivatives at inception was determined using the Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 229.31%, (3) weighted average risk-free interest rate of 0.12% %, (4) expected life of 1.00 year, and (5) estimated fair value of the Company’s common stock from $0.1316 per share. The initial fair value of the embedded debt derivative of $631,220 was allocated as a debt discount up to the settlement agreement ($418,000) with the remainder ($213,220) charged to current period operations as interest expense. For the nine months ended May 31, 2014, the Company amortized $418,000, due to the demand nature of the agreement ,to current period operations as interest expense. As of May 31, 2014 the gross balance of the settlement agreement was $348,000.
During the nine months ended May 31, 2014, the Company issued an aggregate of 1,107,680 shares of its common stock as payment of $70,000 of the settlement payable.
At May 31, 2014, the fair value of the embedded derivatives of $604,532 was determined using the Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 170.47%, (3) weighted average risk-free interest rate of 0.10% , (4) expected life of 1.00 year, and (5) estimated fair value of the Company’s common stock from $0.03 per share.
11/22/14 7:55 AM
As of May 31, 2014 the gross balance of the settlement agreement was $348,000
iTALK, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MAY 31, 2014
(unaudited)
On May 27, 2014, the Company issued 4,939,760 shares of its common stock as collateral in connection with the continuing litigation with IBC Funds (see Note 12). The common stock was recorded at par value in the Company’s financial statements.
At May 31, 2014, the fair value of the embedded derivatives of $604,532 was determined using the Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 170.47%, (3) weighted average risk-free interest rate of 0.10% , (4) expected life of 1.00 year, and (5) estimated fair value of the Company’s common stock from $0.03 per share.
The fair value of the embedded derivatives at inception was determined using the Binomial Option Pricing Model based on the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 229.31%, (3) weighted average risk-free interest rate of 0.12% %, (4) expected life of 1.00 year, and (5) estimated fair value of the Company’s common stock from $0.1316 per share. The initial fair value of the embedded debt derivative of $631,220 was allocated as a debt discount up to the settlement agreement ($418,000) with the remainder ($213,220) charged to current period operations as interest expense. For the nine months ended May 31, 2014, the Company amortized $418,000, due to the demand nature of the agreement ,to current period operations as interest expense. As of May 31, 2014 the gross balance of the settlement agreement was $348,000.
Karen Frietag, Vice President- Global Sales at Sprint states, We are pleased that iTalk has chosen the Sprint network in combination with Unified Signals billing system to grow its MVNO offering. Sprint has spent a great deal of capital and effort in expanding its wireless voice and data network over the years and continues to increase its network footprint each day. We have provided Unified Signal the tools necessary to ensure that iTalk has the functionality it needs to compete and differentiate itself in the marketplace.
