Italk Inc (OTCMKTS:TALK) jumped enormously in terms of both share price and volume after the company released its 10-Q for the period of three months ended on February 28, 2015. In the 10-Q, the company stated its plan of operations going ahead and revealed results of its operations for the said period.
One of the biggest plans of the company is to roll out a low cost broadband plan under its iData brand. The company mulls to offer the affordable, cost-effective broadband plan starting $9.99 per month. Italk Inc (OTCMKTS:TALK) also briefed its other plans on the communications and wireless network technologies front in the 10-q form. Additionally, the company is also planning to strengthen its prepaid and postpaid mobile broadband and telecommunications services to target consumers from all verticals.
While reading the finer details, Italk Inc (OTCMKTS:TALK) did acknowledge the fact that it is unable to raise capital through private equity and is undergoing hardships to raise capital. The company alerted that its investors may lose their investment in an event of the company’s inability to raise any capital or enter any new business opportunity.
Concerns over continuing as going concern
The results of operations throw light on Italk Inc (OTCMKTS:TALK)’s lower revenues that stood at $159,000 as against $137,000 for the same quarter a year ago. The revenues numbers are inclusive of deferred revenue of $104,565 that the company has carried forward from the previous year.
The company’s Selling, General, and Administrative expenses swelled from $144,000 to $186,950 during the reported period, while there was an increase in other expenses as well. The company’s working capital deficit has widened to $2.7 million from $2.2 million quarter-over-quarter while its net loss at the end of the three month period stood at $373,202.
The stock of Italk Inc (OTCMKTS:TALK) ballooned by 250% to $0.0070 as 18 million shares traded hands on the day.