Validian Corp fka VLDI

[Surwin]

Do you mean the one that is posted every quarter and the one that has not allowed them to record revenue from three license agreements made in prior years:

Revenue: On January 1, 2006 we entered into an agreement with a Value-Added Reseller (“VAR”), pursuant to which we granted the VAR a license to sell our software to the VAR’s customers for a period of three years. As a result of subsequent delays in completing certain of our software products to a market ready stage, and in consideration of the general market decline during 2009, we have agreed to extend the expiry of this agreement, with terms to be negotiated upon completion of our current development initiatives. Our fee for this license, excluding applicable sales taxes, was $155,000, of which $151,650 has been collected. We will recognize revenue in connection with this sale once all of the criteria required for us to do so as set out in our accounting policies, have been met.



During the year ended December 31, 2010, we entered into an agreement with a VAR, pursuant to which we granted the VAR a license to sell our software to the VAR’s customers for a period of one year. A nonrefundable deposit of $165,000 was received in connection with this contract; revenue will be recognized under this contract as the conditions for recognizing revenue as set out in our accounting policies have been met.

During the year ended December 31, 2016, we entered into a Software License Agreement with a customer pursuant to which we granted a license to integrate and deploy our software in their application. An initial license fee of $400,000 was paid on signing for the license and integration, which integration was completed during 2016. A royalty per end point and/or end user is payable quarterly in arrears upon deployment of the application. We also entered into a Software License Agreement with another customer pursuant to which we granted a license to integrate and deploy our software in their application. An initial license fee of $75,000 was paid on signing for the license and another payment of $75,000 is due upon the integration, which is scheduled for completion during 2019, plus a royalty per end point and/or end user is payable quarterly in arrears upon deployment of the application.

The one that does not allow them to record revenue from 2006, 2009 and 2010 and the one that verifies they have no revenue per end point from any license agreement since then.

BTW if revenue is not recognized in the P&L for certain accounting reasons it is recognized in the cash flow and balance sheet. Since there was no cash flow or revenue recognized from sales and there were no sales in 2019 and they expect sales in Q4 as always kicking the revenue can down the road, which never happens, simply means they can not produce ongoing revenue plain and simple. Nothing new!