Vitro Diagnostics Inc (fka VODG)

[Potse]

Q3 press release...very encouraging.....

The Q3 2018 press release was extremely interesting. All indications suggest that VODG has finally turned the corner, with business activities ramping nicely, and potentially very interesting developments coming.

One thing I had hoped to see in this press release is management (either CEO Musick or CFO Evans) provide more information on the status of the filing delinquency. I can't stress enough how important it is for VODG to provide more transparency regarding this issue (see post above, for my concerns). The SEC seems to be getting more aggressive in its suspension/revocation activity (albeit, still inconsistent) in the last year. That continued threat to the stock has obvious influence/implications on the stock price and the safety of retail shareholder positions in this stock. Hopefully management will be very proactive in rectifying the delinquency, or at a minimum provide shareholders with a more detailed view of the situation.

Other than that, this press release was very encouraging. Some of the more interesting statements/comments in the PR centered around the guidance of being cashflow positive going forward, the cosmetic product, and IRBs that are currently under review in other countries......

Cashflow/Revenues: The statements/comments in the financial results section of the press release suggest/imply that VODG will probably be seeing $200+K revenue quarters going forward......

During the quarter, the Company was cashflow positive on an operating basis of $7,344 vs negative ($60,869) in the comparative prior year’s quarter. The Company expects positive cashflow going forward. The Company plans to pay its founder and C.E.O., who has provided service without or deferred salary for some time, on a current basis going forward. While this will add to SGA expenses, we anticipate that increased revenue growth will more than offset the increased expenses.

Jim Musick's annual salary is $150K, which equals $37.5K per quarter. Unless there is a very significant decline in operating expenses (which would seem unlikely given the company's comments about operational expansion), or a very significant improvement in gross margin (currently at 76%), that suggests VODG expects quarterly revenues will increase by $50K going forward. ($37.5K/76% = $49.3K)

Cosmetic product:

Developed a new allogenic stem cell-based cosmetic product and began initial testing in the fourth quarter. The product is intended for topical use only and is classified as a cosmetic device without mandatory requirements for FDA registration. The Company is exploring a strategic relationship with a world renown Cosmetic Surgeon with an affiliated clinician group with over 800 facilities in the US......

......We have also developed a stem cell-based cosmetic product that is in early testing, has already contributed to revenue growth and we expect to be expanding this product aggressively into 2019.

IRBs under review:

“We are pleased to see continued revenue growth in our core allogenic stem cell therapies while our stem cell research products also provide revenues as well. We are supporting offshore opportunities with patent filings in the Cayman Islands, other Caribbean islands and Australia. The company entered into an exclusive stem cell distribution agreement to expand its operations into Saudi Arabia; Columbia, Italy and the UK. These regions require IRB’s that are under review. The Company expects these expansions to contribute to its growth in 2019.

https://www.sec.gov/Archives/edgar/data/793171/000101103418000094/vitro_99ez1.htm