KMA Global Solutions International (KMAG)

[DragonBear]

We need clarification on what was provided rather

than a list of companies. Are these active customers or inactive? Are these customers of KMA Global or Kmag Hong Kong?

Considering the list was issued by the private company KMA Hong Kong Ltd, then by definition they are KMA Hong Kong Ltd customers.

Chinese customer orders from KMA Hong Kong. KHK places an order with rpac, or possibly some other Chinese manufacturer. If placed with rpac, and IF it involves rpac product using Reid patents, then rpac kicks back a 1-3% royalty dependent upon YTD volume sales. All outlined in the Annuals. The royalty passes through KMAG to Reid as the patent holder. No accrued value for shareholders. Reid may choose to allocate part of the royalties to pay for office space etc. But then it becomes royalties owed by the company to Reid.

It's also sort of difficult for KMAG to have any direct customers in NA, unless KMAG is a distributorship of rpac products. Keep in mind rpac claims to have 11 sales offices in NA of their own.

KMAG has no known manufacturing capability. Reid states in the 2011, 2012 Annuals there is no manufacturing capacity, and none planned for then 2012-2013. Yeah, he did issue a bogus PR about shipments from "Factory A", and "Factory B" in early 2012. Too bad that Form 10 never was submitted. There are no mystery factories in a Form 10. They would have to be named. Maybe that's one of the self hanging reasons, Reid can't submit a Form 10. He can't reconcile past PR claims with what he would need to disclose in a Form 10.