Here's where most of the mphase money is going to go,that and car leases and salaries
Form 8-K for MPHASE TECHNOLOGIES INC
Item 8.01 Other Events
On February 26, 2013, mPhase Technologies, Inc. (the "Company") filed its Answer to a lawsuit filed by John Fife against the Company in the U.S. District Court , Northern District of Illinois Eastern Division. The lawsuit alleges events of default by the Company under the terms of a Convertible Debenture in the original amount of $557,500 issued by the Company to a company owned by Mr. Fife on September 13, 2011.
In the Answer the Company has asserted various affirmative defenses and counterclaims against Mr. Fife, including but not limited to claims for significant monetary damages caused to the Company's common stock as the result of the failure to disclose a prior Consent Decree entered into between Mr. Fife and the Securities and Exchange Commission. The Company is not able to predict the outcome of such litigation but intends to pursue all of its rights and remedies vigorously under the Federal Securities Laws.