ViaDerma Inc (VDRM)

[Mistral]

Here are some other important sections from the Annual Report. Nice to see more transparency...not that I needed it. Good to see he is coming clean.

As of December 31, 2016 and 2015, the Company had accounts receivable balances from related parties in amount of $371,565 and $169,980, respectively. The related party sales were to either Coast to Coast Podiatry Inc. or Neurogenx NerveCenter of Newport Beach, the second office of Coast to Coast Podiatry Inc. opened in September 2016 under a different DBA. Coast to Coast Podiatry Inc. is related by virtue of the majority interest being owned by Dr. Chris Otiko, the President of the Company. In additional to the benefit of the Company getting the sales associated with these transactions, the Company uses this platform to evaluate results and any quality control issues that could arise with the products since Dr. Otiko is able to monitor the businesses.

As of December 31, 2016, the Company was in default on the repayment of certain convertible notes and promissory notes with an aggregate principal amount of $274,917, which are immediately due and payable. The continuation of the Company as a going concern through December 31, 2017 is dependent upon the continuing financial support from its stockholders or negotiation of repayment term. Management believes the existing shareholders will provide the additional cash to meet the Company’s obligations as they become due.

On December 27, 2016, we were assigned exclusive use of a new provisional patent developed by a company controlled by our President, Dr. Chris Otiko in exchange for the cash payment of One Dollar ($1.00). The patent number and description are as follows:

PROVISIONAL PATENT NUMBER: 62433964
ENHANCED ANTIBIOTIC AND DRUG DELIVERY FOR AQUEOUS TOPICAL
APPLICATIONS FOR HUMAN AND VETERINARY USES