Verus International Inc (VRUS)

[NoMoDo]

An old scam of OTC companies was to sell invoices instead of product. The company would invoice a willing participant for products never delivered. That invoice would raise sales enough for an auditor to call it sales. Then three months later, 30% was written off as bad debt. The debt would continue to be marked as bad debt. Not saying that this is what happened, but there is always a chance.

Worse than AR, why the $3 mil increase in salaries?

As far as the auditor statement, they gave two specific reasons and then said that they didn't complete the audit at that point so there may or may not be anything else. The two reasons were failure to report 21 Form 4 filings by Anshu and other incidents of non or misreporting of toxic debt. The funny thing about this is that the former CEO and CFO of XDSL - Anshu's other company - were banned from doing an RS because of this very reason. Anshu better get going on that RS before the SEC gets involved.

Section 16(a) of the Exchange Act requires our directors, executive officers, and stockholders holding more than 10% of our outstanding securities, to file with the SEC initial reports of ownership and reports of changes in beneficial ownership of our securities. To our knowledge, based solely upon a review of Forms 3, 4, and 5 filed with the SEC during the fiscal year ended October 31, 2019, we believe that, except as set forth below, our directors, executive officers, and greater than 10% beneficial owners have complied with all applicable filing requirements during the fiscal year ended October 31, 2019.

? Christopher Cutchens failed to report 1 transaction on time on a Form 4; and

? Anshu Bhatnagar failed to report 21 transactions on time on a Form 4.