MIAMI, Fla., May 28, 2014 /PRNewswire/ -- NETTALK.COM
INC. ("netTALK"; OTCBB: NTLK), a leading ultra-low cost provider of
home phone and smartphone communications, announced a significant
recapitalization of their debt and equity capital structure, which
included a reduction of their total outstanding debt from
approximately $24,000,000 to
approximately $7 million dollars:
- Debt decreased approximately $17,000,000
- Accrued dividends decreased approximately $1,601,000
- Accrued interest decreased approximately $436,000
In addition, all shares and derivative securities previously
held by Vicis Capital Master Fund, including the Series A
Convertible Preferred Stock, Series B Convertible Preferred Stock,
Common Stock, and Warrants to purchase shares of netTALK Common
Stock, were returned to the company.
The recapitalization sets the stage for netTALK to operate with
a clean, rationalized capital structure that will allow the company
to realize its plans for new products and increase manufacturing of
existing products.
Profit/Loss Financial Highlights
For the first quarter of 2014 compared to the first quarter of
2013, we realized the following:
- Increased Gross Profit from 13% to 36%
- Reduced Operating Expenses 36%
- Reduced Operating loss 59%
- Reduced Interest Expense 70%
- Reduced Net Loss 62%
"We improved our business in a number of ways. We have greatly
improved our operational efficiency, we raised additional capital
for growth and patent litigation, and in connection with that
capital raising, we redeemed all of the equity, warrant, preferred
and debt securities held by our initial lead investor, which
amounted to approximately $24,000,000, in exchange for a $3,000,000 promissory note," said Anastasios
"Takis" Kyriakides, netTALK founder and CEO. "We now have a much
cleaner, de-leveraged balance sheet to support our growth and
expansion plans."
About netTALK
netTALK is a public company engaged in the design, distribution
and sale of consumer electronics products and low-cost Voice over
Internet Protocol (VoIP) telephone services. Products include the
netTALK DUO and DUO WiFi and the newly updated iOS (Apple) and
Android Smartphone apps, offering free nationwide calling in US and
Canada. Users have the option to
add international calling TALK credits for calling anywhere in the
world without using cellphone minutes or roaming charges,
eliminating the need for calling cards or contracts. You can
download the free app to your mobile device
at iTunes or Google Play and Amazon App
Store.
This press release may contain forward-looking statements as
defined by the Private Securities Litigation Reform Act of 1995
that involve substantial risks and uncertainties. These statements
present management's expectations, beliefs, plans and objectives
regarding future financial performance, and assumptions or
judgments concerning such performance. Any discussions contained in
this press release, except to the extent that they contain
historical facts, are forward-looking and accordingly involve
estimates, assumptions, judgments and uncertainties. There are a
number of factors that could cause actual results or outcomes to
differ materially from those addressed in the forward-looking
statements. Such factors are detailed in Net Talk.com, Inc.'s
Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and subsequent reports filed
with the Securities and Exchange Commission.
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SOURCE NETTALK.COM INC.
