Verisante Technology Inc (VRS.H)

[croman]

The bad debt probably originated from the units that were sent to their european distributors. If you recall, VRS stated in one of their previous financials that all shipped units were considered sold units, and where therefore entered as receivables in the books. With that being said, the european distributors most likely did not sell many units, or the distributors did not receive payments for the sold units, and therefore did not forward the proceeds of the sales to VRS.