Validian Corp (fka VLDI)

[Homebrew]

The Company has no revenues, has negative working capital of $4,402,563, and stockholders’ deficiency of $4,402,563 as at September 30, 2016, and has incurred a loss of $4,282,026 and negative cash flow from operations of $1,388,451 for the nine months then ended. Furthermore, the Company failed to settle certain 10% senior convertible notes and promissory notes plus accrued interest when they matured on various dates between October 2008 and December 2015. As a result of these non-payment defaults, all of the 10% senior convertible notes, as well as the promissory notes were in default at September 30, 2016, in accordance with the default provisions of the respective notes, and consequently are due and payable on demand. In addition, the Company expects to continue to incur operating losses for the foreseeable future, and has no lines of credit or other financing facilities in place.