CASH POOR ISP TTP SpeedConnect has no assets to pay American Tower Corp. after a Colorado court awarded the towerco almost $4 million for unpaid rent. The parent company, TPT Global Tech, Inc., keeps announcing multi-million dollar deals to shore up its non-existent stock value, but they are oftentimes never completed.
In a recent decision from the United States District Court for the District of Colorado, Judge Charlotte N. Sweeney granted a motion for default judgment in favor of American Tower Corp. against TPT SpeedConnect LLC (TPT), a subsidiary of TPT Global Tech, Inc (TPTG). The court’s ruling, issued on June 11, 2024, orders TPT to pay a sum of almost $4 million. However, American Tower faces significant challenges in collecting this amount due to the defendant’s precarious financial situation.
Background of the case
American Tower filed its lawsuit against TPT in May 2023, alleging that TPT had breached 60 license agreements related to the installation and operation of telecommunication equipment on towers owned by the plaintiff. Despite being served with the summons and complaint in June 2023, TPT failed to respond or appear in court.
Court says American Tower can rip and replace TPT’s equipment
Judge Sweeney found that American Tower had sufficiently alleged facts supporting their claims for breach of contract, which included specific details about the agreements and the defendant’s failure to meet its obligations. The judgment consists of the following:
- Damages: TPT is ordered to pay $2,914,831.31 in unpaid rent and licensing fees, with additional accrued interest of $987,528.88, bringing the total judgment to $3,902,360.19.
- Attorney Fees and Costs: The court awarded the plaintiff $75,344.97 in attorney fees and costs.
- Declaratory Relief: American Tower is authorized to remove and dispose of TPT’s equipment from the 60 sites, facilitating the re-letting of these locations.
It’s a long road for recovery
Given TPTG’s dire financial state, the likelihood of the American Tower recovering the total amount is uncertain and most likely unobtainable.
When American Tower filed the lawsuit a year ago, TPTG’s stock traded on the OTC pink sheets at $0.0012, down 99.98% in the past ten years. Today, it is now trading at $0.000.3.
According to its SEC filing, earnings for 2023 were $3.3 million, almost half of the previous year’s earnings. Net loss was $10.3 million.
The first quarter ended March 31, 2024, and was equally dismal, with the company reporting revenues of $398K and a net loss of $3.3 million.
Running out of cash, TPTG raised substantial doubt about the company’s ability to continue as a going concern for one year.
Multi-million-dollar deal announcements fall flat
TPTG has attempted to buoy its stock price with business acquisitions that still need to be completed.
In early 2023, TPTG announced that it had agreed to a private placement of $30 million from Duna Energy Systems, but the deal has not been completed.
Looking for companies with cash flow-positive operations that they could acquire, in 2023, they announced that they would be acquiring Broadband Infrastructure, Inc., a profitable turnkey telecom/data infrastructure company specializing in fiber installations.
A spokesperson for Broadband Infrastructure informed Wireless Estimator that the proposed agreement had expired and that the deal had never happened.
Many of their acquisition announcements are questionable. For example, in July 2023, they announced the “completion of a real estate land purchase,” acquiring 1.2 acres in Charlotte, NC, that would be developed into an 80-unit affordable housing and sustainable apartment complex.
According to court records, the acquisition never went through, and the property is still owned by the original owner, who was delinquent in taxes then.
Questionable risk factors are cut and pasted over the years
In its 2023 annual report, TPTG detailed some risk factors that their competitors and better-established companies could use that would adversely affect their stock price. They stated they were very knowledgeable about the broadband services industry being characterized by rapid technological change. Still, the risk they were concerned about was competitors taking away their market share by “offering dial-up internet connectivity.” Another dated concern was: “3G cellular, PCS, and other wireless providers offering wireless broadband services and capabilities, including developments in existing cellular and PCS technology that may increase network speeds or have other advantages over our services.”
Crown Castle is owed $386K
According to a February 2024 filing, TPTG identified an additional lawsuit by a collection law firm on behalf of Crown Castle against the company. The $386,030 claim derives from an outstanding debt by TPTB’s Copperhead Digital.
The lawsuit is over unpaid tower rent that should have been paid by their subsidiary Copperhead Digital.