ViaDerma Inc (VDRM)

[industrialist]

I think this filing is squarely in VDRM's favor. I feel much better now that much of the uncertainty is exposed.

First, the brunt of the lawsuit is against Phillips, not Otiko. He's secondary. However, it appears the key to this whole lawsuit is that the agreement between Phillips and Keogh seems to have expired. In addition, there's questions about the validity of the patent and whether it may have expired. No doubt, Otiko seems to have the upper hand here and will defend it. It's exciting just to know that Keogh is fighting this. It tells us there's something of extreme value here.

Also, don't leave out this possibility. This lawsuit could produce a quick settlement between all parties. Keogh knows he's up against it. He may agree to become a silent partner in this whole deal and let Phillips and Otiko move forward. Actually, I think that's most likely what will happen. Keogh didn't do anything with the patent before and I'm sure he has no intent to do anything with it now, other than join the fruits of Otiko's labor.

Secondly, it's great that we don't see huge debt or financial obligations for VDRM in the filing. This is absolutely unheard of for a company like this. Usually they are strangled to death with convertible debt, etc. Not VDRM, which gives us a huge leg up and an extreme amount of latitude to get financing when they need it. This filing is superb!!