SOURCE: iTalk, Inc.

iTalk, Inc.

May 06, 2016 09:00 ET

iTalk, Inc. Updates Shareholders on Status of 8-K Financial Audit and SEC Form 10 Filing

DELRAY BEACH, FL--(Marketwired - May 6, 2016) -  iTalk Inc. (OTCQB: TALK) ("iTalk" or the "Company"), a value added distributor and master agent for the wireless industry, is providing an update to shareholders and the investment community today. Based on recent communications with our Auditing Firm with regard to the progress of completing the audit of our subsidiary United Mobile Solutions' 8-K financial statements for years 2014 and 2015, we can now advise that the audit is expected to be completed in approximately two weeks' time and iTalk's 10-Q, next week.

In addressing these internal financial reporting requirements, management continues on a path focused toward fully integrating the recent acquisitions United Mobile Solutions, United Prepaid and TouchPoint, which is expected to result in increased profitability and liquidity for the Company.

Mr. David Levy, iTalk's CEO, concluded his statements by saying, "I want to thank our staff and our management team for their many hours of work to complete this task. As much as anything though, I want to thank our shareholders for their patience during this laborious process. Moving forward, we expect our shareholders to benefit from the performance of our Company in business and in the marketplace."

Mr. David Lee, President of iTalk, said, "In the last few months we have made significant strides toward enhancing the Company's market position and shareholder value. We have assembled a strong management team, which has implemented enhanced operational controls and cost cutting measures aimed at increasing efficiency and profit margins. To increase efficiency and reduce overhead, we have affected the relocation of TouchPoint's refurbishing facilities from Dallas, TX to Norcross GA. We expect this move to increase management oversight and improve turn around times while reducing lead times and delays in production and procurement. We are excited to announce that we are fully operational and have already increased our available production capacity. We are working on a number of business development initiatives that will result in material expansion of our market position and expect to make specific announcements about these in the near future. In our effort to reach profitability, we have implemented debt restructuring and consolidation, auditing of financials, and complete reviews of all new acquisitions. In addition, we have been working closely with our major carrier partners in planning and developing our growth strategy. This new strategy will include expanding our existing geographical markets, both through acquisition and new store build-outs with funding support from the carriers. This year we will open locations in desirable markets in several new states both inside and beyond the Southeast. We believe that the investment into our infrastructure and our reputation for successful execution with the carriers has positioned us to be considered a preferred distribution partner in the aggressive growth plans of the carriers. We expect our growth strategy will result in iTalk's establishment of a national footprint within the coming months. The iTalk team's goal, at the end of the day, is to work tirelessly on behalf of its shareholders to create a highly profitable company."

About iTalk

iTalk is a full service solutions provider for the mobility industry, specializing in retail and wholesale distribution, master agent services, as well as providing turn key dealer portal and logistic solutions to our customers and dealers. We have positioned ourselves to stay ahead of the evolving mobile technology curve through our focus on creative value added services. Through our extensive offerings, iTalk has set itself apart by implementing innovative solutions to the customers and dealers of the carriers it serves. iTalk is a proud preferred distribution partner with the fastest growing Post Paid carrier in the nation as well as the number 1 fastest growing Prepaid Carrier in the nation. Through its extensive portfolio of capabilities and talent, iTalk is able to provide turn key solutions to meet the demands of today's wireless industry and provide value added solutions to its growing network of resellers and eCommerce driven consumers. Our foundation is built on a solid distribution network, comprised of various channels enabling us to continue to source and develop innovative products and services while quickly deploying new emerging mobile technologies and brands into the marketplace. iTalk currently employs 30 people and is based in Norcross, GA with operations in San Antonio, TX, Dallas, TX, the Carolinas, Georgia and Miami Florida, with planned expansion to growth markets throughout the United States.

Forward Looking Statements: This press release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended and such forward looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties that could cause future results to differ materially from the forward-looking statements. You should consider these factors in evaluating the statements herein and not rely on such statements. The forward-looking statements in this release are made as of the date hereof and iTalk, Inc. undertakes no obligation to update such statements.

Disclaimer/Safe Harbor: Statements about the Company's future expectations and all other statements in this press release other than historical facts, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements in this report consist of, among other things, statements regarding the Company long-term financial goals for non-GAAP revenues, Non-GAAP operating costs and non-GAAP income from operations, all of which are based on current expectations, estimates, and forecasts, and the beliefs and assumptions of the Company's management. The above information contains information relating to the Company that is based on the beliefs of the Company and/or its management as well as assumptions made by and information currently available to the Company or its management. When used in this document, the words "anticipate," "estimate," "expect," "intend," "plans," "projects," and similar expressions, as they relate to the Company or its management, are intended to identify forward-looking statements. Such statements reflect the current view of the Company regarding future events and are subject to certain risks, uncertainties and assumptions, including the risks and uncertainties noted. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove to be incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of the accompanying meaningful cautionary statements herein. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, the impact of competitive services and pricing and general economic risks, estimated, expected, intended or projected. In each instance, forward-looking information should be considered in light of these uncertainties.

Use of Non-GAAP Financial Measures

The Company has provided in this Current Report on Form 8-K financial information that has not been prepared in accordance with generally accepted accounting principles ("GAAP"). This information includes non-GAAP revenue, non-GAAP operating costs and non-GAAP income from operations. The Company uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating the Company's ongoing operational performance. The Company believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial results from period to period with other companies in the Company's industry, many of which present similar non-GAAP financial measures to investors. These non-GAAP financial measures may not be completely comparable to similarly titled measures of other companies due to potential differences in the exact method of calculation between companies. Non-GAAP financial measures discussed above may exclude items such as write-downs of acquisition-related deferred revenue, stock-based compensation expense, amortization of intangibles arising from business combinations, employee severance, write-off of prepaid proprietary software licenses, impairment of cost method investment, impairment of capitalized software development costs due to a business combination, acquisition-related integration costs, acquisition-related expenses, and restructuring costs, because they are not directly related to the Company's performance in any particular period, but are for the Company's long-term benefit over multiple periods. The Company believes that these non-GAAP financial measures reflect the Company's ongoing business in a manner that allows for meaningful period-to-period comparison and analysis of trends in the Company's business. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures.

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