Replies to post #153541 on On4 Communications Inc (ONCI)

[ApollyonZ]

..The Delaware statute of limitations for contract type claims is either three years (general contracts) or four years (UCC claims). Yet the statute of limitations for the IRS to assert tax recovery claims on things such as payroll taxes or ERISA claims well exceeds these Delaware periods.

https://www.dlapiper.com/en/us/insights/publications/2014/05/statutes/

Debt fy17 $620k at least and statues of limitations does not help.

ONCI!

[QTRADERQ]

ONCI owes approx. $570k Delaware franchise tax, not $329k as previously discussed.

Here's why...

According to Delaware, Steve Berman never submitted their 2015, 2016 & now 2017 financials.

So, Delaware estimated the 2015 & 2016 liability using 2014 AS count of 600MM and they arrived at an estimate of 329k. But Delaware said (below) the assessment was tentative and would change when the financials were filed with the State. Since Steve never filed, Delaware formally does not know ONCI raised there AS up to 5.03 Bil in 2015.

*The Auth share & issued share count will readjust the tax due amount. That info is avail online and will adjust the past due tax amt.

AS count
10/31/14 - 600MM AS
10/31/15 - 5.03 Bil AS
10/31/16 - 5.03 Bil AS
10/31/17 - 5.03 Bil AS

Tax liability
10/31/15 - 180k
10/31/16 - 180k
10/31/17 - 180k
Tax - $540k
Penalty & Interest - 30k (est)
Grand total - $570k

Delaware's default method to calculate the Franchise Tax is based on AS. The alternate method (Par Value) also exceeds the max liability.

Here's is how the Delaware Tax is computed based on AS

5,000 shares or less (minimum tax) $175.00
5,001 – 10,000 shares – $250.00
Each additional 10,000 shares or portion thereof add $75.00
Maximum annual tax is $180,000.00
https://www.cooleygo.com/so-you-owe-thousands-in-delaware-franchise-tax/

As always. JMO

State of Delaware: Past Due Tax, currently the total amount past due is-$329,000. That is before any adjustments to the 2015 Tax year.

*The Auth share & issued share count will readjust the tax due amount. That info is avail online and will adjust the past due tax amt.

>This email is in response to your FOIA form sent to the Department of State on February 1, 2018. Your inquiry will be addressed by the Division of Corporations. Please contact the Division at 302-739-3073 and press option 3 for the Franchise Tax Department, Then press 0. Reference On4 Communications, Inc. Delaware file # 3397838.

[QTRADERQ]

CEO should have paid DELAWARE instead of COGOSENSE. JMO

State of Delaware: Past Due Tax, currently the total amount past due is-$329,000. That is before any adjustments to the 2015 Tax year.