INTERLINK-US-NETWORK, LTD.

10-Q 1 interlink10qmay2110.htm INTERLINK-US-NETWORK, LTD. FORM 10-Q INTERLINK-US-NETWORK, LTD.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)


[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934

For the quarterly period ended: March 31, 2009


[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934

Commission file number: 000-50021

INTERLINK-US-NETWORK, LTD.

(Exact name of registrant as specified in its charter)


California	95-4642831
(State or other jurisdictionof	(I.R.S. Employer
Incorporation organization)	Identification No.)

10390 Wilshire Boulevard

Penthouse 20

Los Angeles, California 90024

(Address of principal executive offices) (Zip Code)

(310) 777-0012

(Registrant's telephone number including area code)

Indicate by check mark whether the registrant (1) has filed all documents and reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filings for the past 90 days. YES x NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.


Large accelerated filer	¨		Accelerated filer	¨
Non-accelerated filer	¨	(Do not check if a smaller reporting company)	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

APPLICABLE ONLY TO CORPORATE ISSUERS:

As of May 21, 2010, the number of the Company's shares of no par value common stock outstanding was 10,145,987.

INDEX

PART I - FINANCIAL INFORMATION

Item 1 – Financial Statements

Item 2 – Management Discussion and Analysis of Financial Condition and Results of

Operations

Item 3 – Quantitative and Qualitative Disclosures about Market Risk

Item 4T – Controls and Procedures

PART II - OTHER INFORMATION

Item 1 - Legal Proceedings

Item 1A – Risk Factors

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

Item 3 - Defaults Upon Senior Securities

Item 4 – (Removed and Reserved)

Item 5 - Other Information

Item 6 - Exhibits

SIGNATURES

INTERLINK-US-NETWORK, LTD.

CONDENSED BALANCE SHEETS

MARCH 31, 2010 AND DECEMBER 31, 2009


	Unaudited	Audited
	March 31, 2010	December 31, 2009
ASSETS
CURRENT ASSETS
Cash in bank.	$ -	$ 1,268
Prepaid expenses	4,671	6,357
TOTAL CURRENT ASSETS	4,671	7,625
		22,939
OTHER ASSETS
Security deposits	11,995	11,995
TOTAL ASSETS	$ 36,042	$ 42,559
LIABILITIES AND STOCKHOLDERS’ (DEFICIT)

CURRENT LIABILITIES
Bank overdraft	$ 3,369	$ -
Accounts payable	920,633	875,455
Accrued liabilities	155,913	160,958
Legal settlement, current portion.	37,500	37,500
Advances from related parties	852,561	878,013
Convertible note payable, net of discount of $16,667..	33,333	-
Notes payable, related party	248,762	248,762
Notes payable, other	645,888	653,536
TOTAL CURRENT LIABILITIES	2,897,959	2,854,224

LONG-TERM LIABILITIES
Legal settlement, net of current portion	168,750	178,125
STOCKHOLDERS’ (DEFICIT)
Preferred stock, Series A
Authorized - 30,000 shares, $0.001 par value
Issued and outstanding - 12,546 shares at March 31, 2010 and December 31, 2009.	13	13
Additional paid in capital, preferred stock, series A	369,466	369,466
Preferred stock, Series B
Authorized – 500,000 shares, no par value
Issued and outstanding – 10,000 shares at March 31, 2010 and December 31, 2009	90,000	90,000
Common stock
Authorized 100,000,000 shares, no par value
Issued and outstanding – 10,145,987 shares at March 31, 2010 and December 31, 2009	7,549,993	7,524,993
Accumulated (deficit)	( 11,040,139)	( 10,974,262)
TOTAL STOCKHOLDERS’ (DEFICIT)	( 3,030,667)	( 2,989,790)
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT)	$ 36,042	$ 42,559

The accompanying notes are an integral part of these financial statements.

INTERLINK-US-NETWORK, LTD.

CONDENSED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009



	2010	2009

SALES	$ 9,912	$ -

COST OF SALES	3,942	-
GROSS PROFIT	5,970	-

OPERATING EXPENSES
CONSULTING FEES	-	13,100
RESEARCH AND DEVELOPMENT	-	81,772
LEGAL EXPENSES	8,700	134,327
RENT EXPENSES	10,856	56,806
GENERAL AND ADMINISTRATIVE EXPENSES	32,088	130,551
TOTAL EXPENSES	51,644	416,556
OPERATING (LOSS)	( 45,674)	( 416,556)
OTHER INCOME (EXPENSE)
Interest expense	( 20,203)	( 2,077)
Legal settlement	-	( 20,000)
TOTAL OTHER INCOME (EXPENSE)	( 20,203)	( 22,077)
(LOSS) FROM OPERATIONS BEFORE CORPORATION INCOME TAXES……………………...	( 65,877)	( 438,633)
CORPORATION INCOME TAXES	-	-
NET (LOSS)	$ ( 65,877)	$ ( 438,633)

NET (LOSS) PER COMMON SHARE BASIC AND DILUTED	$ ( 0.01)	$ ( 0.07)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED	10,145,987	6,016,124

The accompanying notes are an integral part of these financial statements.

INTERLINK-US-NETWORK, LTD.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009


	2010	2009
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) from operations	$ ( 65,877)	$ ( 438,633)
Adjustments to reconcile net (loss) to net cash (used) by operating activities:
Depreciation	3,563	3,822
Interest from beneficial conversion on convertible note payable	8,333	-
Changes in operating assets and liabilities:
Prepaid expenses	1,686	12,983
Accounts payable	45,178	149,702
Accrued liabilities	( 5,045)	5,940
Legal settlement payable.	( 9,375)	-
NET CASH (USED) BY OPERATING ACTIVITIES	( 21,537)	( 266,186)


CASH FLOWS FROM BY INVESTING ACTIVITIES	-	-
CASH FLOWS FROM FINANCING ACTIVITIES
Bank overdraft	3,369	220
Proceeds from advances from related parties	24,104	186,311
Proceeds from convertible note payable.	50,000	-
Repayment of advances from related parties	( 49,556)	-
Repayment of notes payable, other	( 7,648)	-
Repayment of notes payable, related parties	-	( 5,201)

NET CASH PROVIDED BY FINANCING ACTIVITIES	20,269	181,330

NET (DECREASE) IN CASH	( 1,268)	( 84,856)
CASH BALANCE, AT BEGINNING OF YEAR	1,268	84,856

CASH BALANCE, AT END OF YEAR	$ -	$ -

SUPPLEMENTARY DISCLOSURE OF CASH FLOW INFORMATION

CASH PAID DURING THE PERIOD FOR:

Interest	$ -	$ 2,077
Taxes	$ -	$ -

NON-CASH FINANCING ACTIVITIES
Interest from beneficial conversion of convertible note payable	$ 8,667	$ -
Increase in stockholders’ equity from discount on convertible note payable	$ 25,000	$ -

The accompanying notes are an integral part of these financial statements.

INTERLINK-US-NETWORK, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2010 AND 2009

NOTE 1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

General

The interim financial statements of Interlink-US-Network, Ltd. are condensed and do not include some of the information necessary to obtain a complete understanding of the financial data. Management believes that all adjustments necessary for a fair presentation of results have been included in the unaudited financial statements for the interim period presented. Operating results for the three months ended March 31, 2010 are not necessarily indicative of the results that may be expected for the year ended December 31, 2010. Accordingly, your attention is directed to footnote disclosures found in December 31, 2009 Annual Report and particularly to Note 1, which includes a summary of significant accounting policies.

Nature of Business

On August 22, 2007, Interlink-US-Network, Ltd. changed its business operations to the marketing and sale of its exclusive line of devices and services for the distribution of entertainment video, 2WayTV (videophone) and internet access. Among its hardware products is the SDI-2 wireless video distribution point for surveillance, remote data and entertainment video including 1080P High Definition Video. Also among the Company’s hardware products is the FRED, a set top unit that enables all of the Company’s services in the home and at the office. The Company continues to use its previously developed technology for the distribution of Video on Demand. This service is being integrated into the new line of equipment as well, using existing servers that provide on-line purchasing interfaces with major credit card services and real time delivery of video.

Basis of Presentation – Going Concern

The Company’s financial statements have been prepared on an accrual basis of accounting, in conformity with accounting principles generally accepted in the United States of America. These principles contemplate the realization of assets and liquidation of liabilities in the normal course of business.

These financial statements are presented on the basis that the Company is a going concern. Going concern contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time. The following factors raise substantial doubt as to the Company’s ability to continue as a going concern:

The Company has accumulated a deficit of $11,040,139 since inception.

The Company has a working capital deficit of $2,893,288.

The Company continues to incur operating losses.

Management’s plans to eliminate the going concern situation include, but are not limited to:

Develop its newly licensed products and technology.

Obtain investors to fund the working capital needs of the company.

Reduce operating expenses.

Negotiate the payment of old outstanding payables.

INTERLINK-US-NETWORK, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2010 AND 2009

NOTE 2

CONVERTIBLE NOTE PAYABLE

On January 6, 2010, the Company entered into a Securities Purchase Agreement providing for the issuance of a Convertible Note in the principal amount of $50,000. The Company must reserve an initial amount of 4,000,000 shares of its common stock, which is to be convertible on October 6, 2010. The note bears interest at a rate of 8% and may not be prepaid without the written consent of the holder. The note shall be converted at a rate 50% (the applicable percentage) multiplied by the market price, which is calculated by taking the lowest three trading prices for the common stock over the ten day trading period prior to the conversion date, which calculates to $0.01583 per share. The closing price of the stock on the day the Note was entered into was $0.03, causing a beneficial conversion of $0.01417 per share. The beneficial conversion is limited to 50% of the note proceeds, and therefore the discounted amount is $25,000, which is amortized on a monthly basis equally from January 6, 2010 through October 6, 2010, and included in interest expense. The total discount remaining at March 31, 2010 is $16,667.

NOTE 3

PREFERRED STOCK, SERIES A

During 2009, Jump Communications exercised its rights to convert a portion of its shares of Series A convertible Preferred Stock to our Common Stock. Jump converted 5,207 shares of Series A Convertible Preferred Stock into 4,388,807 shares of Common Stock.

There were no transactions during the three months ended March 31, 2010.

As of March 31, 2010, there are 12,546 shares of Series A convertible preferred stock outstanding.

NOTE 4

PREFERRED STOCK, SERIES B

During the year ended December 31, 2009, the Company sold 10,000 shares of its Preferred stock, Series B for $100,000. There was $10,000 of expenses related to the sale. Preferred stock, Series B has no par value, has dividend and liquidation preference over common stock, and has no voting rights. Each share of Series B Preferred is convertible into shares of Common stock at a rate of the greater of (a) $6.50 per share of Series B Preferred at the time of conversion or (b) the actual price per share of common stock based on the average trading price of the common stock for the ten days preceding the date of the notice of conversion. The conversion period starts six months after the date of sale and ends after one year. On the one year anniversary of the sale, June 6, 2010, the preferred is automatically converted into common.

There were no transactions during the three months ended March 31, 2010

There are 10,000 shares issued and outstanding as of March 31, 2010. As of the date of this filing, no conversions have been made.

NOTE 5

COMMON STOCK

During the year ended December 31, 2009, Jump Communications exercised its right to convert a portion of its shares of Series A convertible Preferred Stock to our Common Stock (See Note 3).

There were no transactions during the three months ended March 31, 2010.

As of March 31, 2010 there are 10,145,987 shares of common stock outstanding.

NOTE 6

PENDING LITIGATION

In February of 2008, Mr. Kasper, a former officer/director of the Company, filed suit against the Company, directors of the Company, and Jump Communications. Management feels that the suit is unwarranted and plans to defend itself to the fullest extent. No adjustments have been made to the financial statements at March 31, 2010 for this contingency.

INTERLINK-US-NETWORK, LTD.

CONDENSED NOTES TO FINANCIAL STATEMENTS

MARCH 31, 2010 AND 2009

NOTE 7

LEGAL SETTLEMENT

In March of 2008, Sony ATV filed suit against the Company, its former President and Director Lee Kasper, and unrelated third parties claiming copyright violations in connection with the Company’s karaoke business, which was discontinued during prior years. On August 17, 2009, there was a settlement agreement reached for $225,000. The Company is to pay $3,125 per month beginning October 1, 2009 through September 1, 2015. If the Company defaults on the payments, an amount of $500,000, less payments made on the settlement, becomes due on demand by Sony ATV. The balance due at March 31, 2010 was $206,250.

NOTE 8

SUBSEQUENT EVENTS

Management has evaluated subsequent events through May 21, 2010, the date which the financial statements were available for issue. There were no subsequent events related to these financial statements.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

In addition to historical information, this Quarterly Report on Form 10-Q contains forward-looking statements. Forward-looking statements involve risks and uncertainties that could and in all likelihood will cause actual results to differ materially. Factors that might cause or contribute to such differences include, but are not limited to, whether the Company can obtain financing as and when needed, competitive pressures, changes in consumer tastes away from the type of products the Company offers, changes in the economy that would leave less disposable income to be allocated to entertainment, the loss of any member of the Company’s management team and other factors over which the Company has no control. When used in this report, the words “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and similar expressions are generally intended to identify forward-looking statements. You should not place undue reliance on these forward-looking statements, which reflect the opinion of the Company’s management as of the date of this Annual Report. The Company undertakes no obligation to publicly release any revisions to the forward-looking statements after the date of this document. You should carefully review the documents the Company files from time to time with the Securities and Exchange Commission. Throughout the Quarterly Report, the terms the “Company,” “Interlink,” and words of similar meaning refer to Interlink-US-Network, Ltd.

Management’s discussion and analysis of results of operations and financial condition are based upon the Company’s financial statements. These statements have been prepared in accordance with accounting principles generally accepted in the United States of America. These principles require management to make certain estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, the Company evaluates its estimates based on historical experience and various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

BUSINESS HISTORY

Recent Events:

Preferred Stock Series B

On June 11, 2009, the Company created a new class of Preferred Stock consisting of 500,000 shares and designated Series B Convertible Preferred Stock, with no par value. Each share of Series B Preferred is convertible into shares of Common Stock at a rate per share equal to the greater of $6.50 per share of Series B Preferred at the time of conversion, or the actual price per share of Common Stock based on the average trading price of the Common Stock for the ten days preceding the date of the conversion, with a minimum conversion of two shares of Common Stock on the basis of $5.00 per share of Series B Preferred.

During the year ended December 31, 2009, the Company sold 10,000 shares of Series B Convertible Preferred Stock.

Products and Services Offered by the Company

The products and networking technology licensed to or acquired by the Company enable the Company to deliver telecommunication, television, and data services in the form of broadcast quality, bi-directional videophones; unlimited television and internet channels (including video on demand, high definition [1080P HD], and super high definition resolutions; voice over internet protocol (VoIP); and internet access to a broad range of vertical markets.

All of these services are to be made available through a single, inexpensive, user friendly, set top box (“STB”) to be manufactured by the Company under its license that acts as the gateway to virtually all currently available communications, entertainment and data services, and “off-the-shelf” equipment (cameras, TVs, microphones and computers) over wired or wireless links (including Digital Subscriber Lines [DSL], cable modem, and private or public networking infrastructure). The STB has been named the “Fred.” The Company will manufacture and sell the Fred in a variety of configurations and price points suitable for the full range of today’s markets, including corporate, government, small business and the consumer.

The Fred works seamlessly with all network infrastructures and protocols to provide comprehensive services, simplifying operations, and reducing the costs for users. In addition to viewing an unlimited number of entertainment channels, accessing the public internet, and connecting via VoIP, users will be able to hear and see each other in real time on their TV sets or PC’s with the same quality that TV programming comes to them, using the low cost Fred and inexpensive broadband connectivity. In providing this simple, inexpensive, bi-directional broadcast quality video, the Company distinguishes its product and service offerings from all others. The Company’s service offering further differentiates itself from competitive offerings by empowering each end point on a network to be a video broadcast origination point.

The Fred, and linkage of multiple Fred’s (the “Network”) through interconnection to public and private networks, makes available a variety of network oriented services that augment and improve services available on the public internet. For instance, the Company’s management and billing systems incorporated into the Network enable on demand, “point-to-point” 2WayTV, credit card approvals, VOD, billing for services and events, selection of services and account management. No special connection is needed to connect to the Network; a basic internet connection is sufficient. The interconnection between the Network to both the public internet and the existing national telephone communications switching infrastructure creates a virtually universal system of access for all.

The Company believes that focusing on its newly licensed products and technology will enable the Company to become a supplier of multi-media products and technology under an integrated, cohesive delivery platform across a broad range of market applications and client sets.

Historical Information relating to the Asset Acquisition Agreement

Jump was organized under the laws of the State of Nevada on July 6, 2006 and registered to conduct business in the State of California on July 25, 2006 with an authorized share capital of five hundred (500) million common shares at $0.001 par value. A. Frederick Greenberg was the sole director, President and Secretary/Treasurer.

Since the Company’s authorized stock was not sufficient to permit the issuance of common stock as consideration for the Acquired Assets, Jump consented to the issuance of the Preferred Stock. In a Pre14C filing to the Commission on October 2, 2007 and the subsequent Definitive 14C filing dated October 31, 2007, the Company announced that it had “received written consent (the “Written Consent”) from Jump, holding the “Preferred Stock”, representing the right to vote approximately 96.4% (corrected herein to 97.17%) as of December 31, 2007.

Equity Incentive Plan

On February 10, 2009, the Company adopted the Interlink-U.S.-Network, Ltd. 2009 Equity Incentive Plan (“The Plan”). The Plan gives the Company the authority to grant and issue up to 2,000,000 shares of common stock to eligible employees and consultants. The grants may come in the form of options to purchase common stock, restricted stock awards or registered stock awards, in the discretion of the Company’s board of directors. There were no options or stock granted at Marcy 31, 2010.

Pending Litigation

In February of 2008, Mr. Lee Kasper filed suit against the Company, directors of the Company, and Jump Communications. Management feels that the suit is unwarranted and plans to defend itself to the fullest extent. No adjustments have been made to the financial statements at March 31, 2010 for this contingency.

Legal Settlement

Critical Accounting Policies and Estimates

In consultation with the Company’s Board of Directors, the Company identified various accounting principles that it believes are key to understanding the Company’s financial statements. These important accounting policies require management’s subjective judgments.

Accounting Estimates. Management uses estimates and assumptions in preparing financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.

Income Taxes. The Company accounts for income taxes in accordance with ASC 740 (Formerly FASB No. 109), which is an asset and liability method of accounting requiring the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between tax bases and financial reporting bases of accounting. In assessing whether deferred tax assets will be realized, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Common Stock Issued for Non-Cash Transactions. It is the Company’s policy to value stock issued for non-cash transactions, such as services, at the fair market value of the goods or services received or the consideration granted, whichever is more readily determinable, at the date the transaction is negotiated.

Stock based Compensation. Effective January 1, 2006, the Company adopted ASC 718 (Formerly FASB No. 123(R)), “Share-Based Payment: An Amendment of FASB Statements No. 123 and 95” using the modified prospective method. Under this method, compensation cost is recognized on or after the effective date for the portion of outstanding awards, for which the requisite service has not yet been rendered, based on the grant date fair value of those awards.

Results of Operations

Selected Statement Of Operations Data

Comparison of Year End Periods. Summarized in the table below is statement of operations data comparing the three months ended March 31, 2010 with the three months ended March 31, 2009:


	Three Months Ended		Increase/(Decrease)
	March 31, 2010	March 31, 2009

Net (Loss)	$ ( 65,877)	$ ( 438,633)	$ ( 372,756)
Net Income Per Common Share from operations
Basic and Diluted	$ ( 0.01)	$ ( 0.07)	$ ( 0.06)

During the three months ended March 31, 2010 we had a net loss of $65,877 compared to a net loss for the three months ended March 31, 2009 of $438,633. During the three months ended March 31, 2010, we significantly reduced our expenditures, including research and development, rent and general and administrative. During the three months ended March 31, 2009 we had a legal settlement in the amount of $20,000 and legal fees in the amount of $134,327 associated with that settlement, as well as $81,772 of research and development expenses associated with the development of new products.

Liquidity and Capital Resources

To date, we have financed our operations with cash from our operating activities, a bank line of credit, a Small Business Administration loan, various loans from individuals, cash raised through the sale of our securities or the exercise of options or warrants, and the issuance of our securities to various consultants in payment for the provision of their services or to other creditors in satisfaction of our indebtedness to them.

In July 2000, we received a $900,000 Small Business Administration loan with Comerica Bank participation. The interest rate per annum is 2% over prime, and the loan is scheduled to be paid over an 18 year period.

In the past, Mr. Lee Kasper, a director and stockholder of the company advanced funds to the Company as follows:

On August 1, 2005, Mr. Kasper advanced funds to produce live music concerts, in the amount of $350,000. The interest rate on the loan is 8% per annum, and the loan was scheduled to be repaid over a 36 month period.

In May of 2006, Mr. Kasper advanced the amount of $22,000. There is no interest on the loan, and the loan was due in December 2007.

Each of these transactions is subject to review and scrutiny in connection with counter-claims and cross claims in the lawsuit initiated by Mr. Kasper and independent claims that the Company may choose to litigate in separate actions.

On December 26, 2008, we received a loan from Jump Communications in the amount of $100,000. No due date has been established and the loan is unsecured.

During 2009 and 2010, we received various loans from Jump Communications totaling $298,182. No due date has been established and the loans are unsecured.

During 2009, we received various loans from ATTI totaling $320,583. No due date has been established and the loans are unsecured.

On January 6, 2010, the Company entered into a Securities Purchase Agreement providing for the issuance of a Secured Convertible Note in the principal amount of $50,000. The Company is instructed to reserve an initial amount of 4,000,000 shares of its common stock, which is to be convertible on October 6, 2010. The note bears interest at a rate of 8% and may not be prepaid without the written consent of the holder. The note shall be converted at a rate 50% (the applicable percentage) multiplied by the market price, which is calculated by taking the lowest three trading prices for the common stock over the ten day trading period prior to the conversion date, which calculates to $0.01583 per share. The closing price of the stock on the day the Note was entered into was $0.03, causing a beneficial conversion of $0.01417 per share. The beneficial conversion is limited to 50% of the note proceeds, and therefore the discounted amount is $25,000, which is amortized on a monthly basis equally from January 6, 2010 through October 6, 2010, and included in interest expense. The total discount remaining at March 31, 2010 is $16,667. .

Sources And Uses Of Cash

Summarized in the table below is information derived from our statements of cash flow comparing the three months ended March 31, 2010 with the three months ended March 31, 2009:


	Three Months Ended
	March 31, 2010	March 31, 2009
Net Cash Provided (Used) By
Operating Activities	$ ( 21,537)	$ ( 266,186)
Investing Activities	-	-
Financing Activities	20,269	181,330

Net Increase (Decrease) in Cash	$ ( 1,268)	$ ( 84,856)

Operating Activities

During the three months ended March 31, 2010, our net loss from operations was $65,877. This included the non-cash items of depreciation in the amount of $3,563 and interest from the beneficial conversion on the convertible note payable in the amount of $8,333. Cash was provided by the decrease of prepaid expenses of $1,686 and the increase in accounts payable of $45,178. These were offset by the decrease in accrued liabilities of $5,045 and the decrease of legal settlement payable of $9,375.

During the three months ended March 31, 2009, our net loss from operations was $438,633, which included the non-cash item of depreciation in the amount of $3,822. We had cash provided by the decrease in prepaid expenses of $12,983, the increase of accounts payable of $149,702 and the increase of accrued expenses of $5,940.

Investing Activities

During the three months ended March 31, 2010 and 2009, the Company did not have any investing activities.

Financing Activities

Financing activities for the three months ended March 31, 2010 provided cash of $20,269. We had a bank overdraft in the amount of $3,369, proceeds from advances from related parties in the amount of $24,104, and proceeds from a convertible note payable in the amount of $50,000. We also had repayments of advances from related parties in the amount of $49,556 and repayments of notes payable to unrelated parties in the amount of $7,648.

Financing activities for the three months ended March 31, 2009 provided net cash of $181,330. We had a bank overdraft in the amount of $220, and proceeds from advances from related parties in the amount of $186,311. We also had the repayment of notes payable to related parties in the amount of $5,201.

Commitments For Capital Expenditures

At March 31, 2010, we had no commitments for capital expenditures.

Going Concern

The financial statements included in this report are presented on the basis that the Company is a “going concern.” Going concern contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time. Our auditors have indicated that the following factors raise substantial doubt as to our ability to continue as a going concern:

we have an accumulated a deficit of $11,040,139 since inception;

we have a working capital deficit of $2,893,288; and

we continue to incur operating losses;

We believe that the following will help to eliminate this qualification:

Develop its newly licensed products and technology;

Obtain investors to fund the working capital needs of the company;

Reduce operating expenses; and

We are negotiating the payment of old outstanding payables.

Past Due Accounts Payable

Approximately $885,000 of accounts payable is over 90 days old.

Off-Balance Sheet Arrangements

There are no guarantees, commitments, lease and debt agreements or other agreements that could trigger an adverse change in our credit rating, earnings, cash flows or stock price, including requirements to perform under standby agreements.

Capital Requirements And Available Capital Resources

Our capital requirements will continue to be significant. However, since we have ceased focusing our business on the production of popular music concerts, the Company’s need for cash for that purpose has ended. Our current business focus is on the manufacturing, marketing and sales of our equipment and telecommunications services. Our future cash requirements and the adequacy of available funds will depend on many factors, including the pace at which we expand our manufacturing and sales, our ability to negotiate favorable manufacturing agreements, and

whether our sales keep pace with our manufacture of product and network expansion, and the general state of the economy, which impacts the amount of money that may be spent for telecommunications and entertainment.

As of March 31, 2010 we had no cash on hand available and $2,893,288 of a working capital deficit. Cash generated by our current operations is not sufficient to continue our business for the next twelve months. We will need additional financing during the next 12 months to pay our costs and expenses, if they stay at current levels. To the extent it becomes necessary to raise additional cash in the future, we will seek to raise it through the public or private sale of debt or equity securities, funding from joint-venture or strategic partners, debt financing or short-term loans, or a combination of the foregoing. We may also seek to satisfy indebtedness without any cash outlay through the private issuance of debt or equity securities. We cannot provide any assurances that we will be able to secure the additional cash or working capital we may require to expand our business and exploit the Company’s products and services.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interlink-US-Network, Ltd. is a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and is not required to provide the information under this Item.

ITEM 4T. CONTROLS AND PROCEDURES

(a) Evaluation of disclosure controls and procedures. Interlink-US-Network, Ltd. is a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and is not required to provide the information under this item. However, the Company's Chief Executive Officer and Chief Financial Officer, after evaluating the effectiveness of the Company's "disclosure controls and procedures" (as defined in the Securities Exchange Act of 1934 Rules 13a-15(e) and 15d-15(e)) as of end of the period covered by this Report on Form 10-Q (the "Evaluation Date"), has concluded that as of the Evaluation Date, the Company's disclosure controls and procedures were effective to provide reasonable assurance that information the Company is required to disclose in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

(b) Changes in internal control over financial reporting. There were no changes in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter that materially affected, or were reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Occasionally the Company is named as a party in claims and legal proceedings arising out of the normal course of the Company’s business. These claims and legal proceedings may relate to contractual rights and obligations, employment matters, or to other matters relating to the Company’s business and operations.

In February of 2008, Mr. Lee Kasper, a former officer and Director, filed suit against the Company, directors of the Company, and Jump Communications. Management feels that the suit is unwarranted and plans to defend itself to the fullest extent. No adjustments have been made to the financial statements at June 30, 2009 for this contingency.

ITEM 1A. RISK FACTORS

Interlink-US-Network, Ltd. is a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and is not required to provide the information under this Item.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND THE COMPANY USE OF PROCEEDS

During the three months ended March 31, 2010, the Company entered into the following transactions with respect to its equity securities:

There were no transactions during the three months ended March 31, 2010.

As of March 31, 2010, there are 12,546 shares of Series A convertible preferred stock outstanding.

There were no transactions during the three months ended March 31, 2010

There are 10,000 shares issued and outstanding as of March 31, 2010. As of the date of this filing, no conversions have been made.

During the year ended December 31, 2009, Jump Communications exercised its right to convert a portion of its shares of Series A convertible Preferred Stock to our Common Stock (See Note 3).

There were no transactions during the three months ended March 31, 2010.

As of March 31, 2010 there are 10,145,987 shares of common stock outstanding.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. (REMOVED AND RESERVED)

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS


Exhibit No.	Description of Exhibit
31.1*	Certificate of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2*	Certificate of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1*	Certificate of the Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*

* Filed herein

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


May 21, 2010	INTERLINK-US-NETWORK, LTD.

	By: /s/ Richard M. Greenberg
	President, Chief Financial
	Officer and Duly Authorized
	Officer (Principal accounting
	and financial officer)