Verus International Inc (VRUS)

[GermanCol]

You only commented on item number 1 of my previous post:

My previous post

Any comments about the other facts I gave you?

And now, my answer to your comments:

The data I am reporting is based on the 9 months ending on 7/31/2018. The gross margin is 13.6% based on their own data. They need 55% to breakeven.

A gross margin of 16.5% is a failed business by any standard. The current data and business operation and performance shows that they are far far away from being profitable. The anemic gross margin whether 13.5% or 16.5% is unacceptable. It is an easy business decision to kill it on the spot.

If you compare the 16.3% margin I mentioned for the last quarter reported until now with the 12.6%, 13.5% or 13.6% that you are mentioning for the last 9 months (you keep on changing the number) you can see that it is improving rapidly, reinforcing item number 4 of my previous post.

4. It is normal to have lower margins when a company is starting. They improve with growth because of economies of scale.

Also, a gross margin of 16.5% is not unacceptable by any standard. Actually, it is a normal gross margin for this type of business and a great margin for a starting business, which is the case for VRUS.

Finally, what you mention about 55% margin for breakeven doesn’t make any sense. Most of the successful companies never achieve a margin like that. What companies analyze is the income needed for breakeven, and we are almost there if not already there. Margins depend mainly on the type of business, but Revenue growth is achieved through M&As, new contracts, agreements, etc. and that what VRUS is doing.

VRUS