XCPCNL Business Services Corp (XCPL)

[charhorse]

Vital Products Part 1
Lets get into this a bit deeper shall we.
(My opinions and thoughts will be in parentesis)
Some portions of the filing are also in parenthesis

VITAL PRODUCTS, INC.

Notes to Financial Statements
October 31, 2008 and 2007
(Unaudited)

1. NATURE OF OPERATIONS AND BASIS FOR PRESENTATION

Vital Products, Inc. (the "Company") was incorporated in the State of Delaware on May 27, 2005. On July 5, 2005, the Company purchased the Childcare Division of Metro One Development, Inc., (formerly On The Go Healthcare, Inc.) which manufactured and distributed infant care products.

(Purchase a company with an existing product,wonder why their selling, oh well, their lose our gain)

As of July 31, 2008, our sole business was to manufacture two products under the On The Go name: a padded training seat that helps toddlers with potty training, and a baby bath with a contoured shape to cradle babies 0-6 months old. As of July 31, 2008, these two products did not produced enough revenue for us to cover our expenses. After evaluating the market for baby care products, we determined that the industry does not offer enough opportunity for a small company to create products that are affordable to develop, price competitive for the consumer and that we can introduce into distribution channels without significant expense. As a result, we determined to not invest further funds developing our baby products line.

We do not own patents on our childcare products and we do not intend to file for patent protection on those products. We do not currently have the capital required to register any patent and would not be able to expend the funds necessary to defend a patent if it was infringed. At this time, we believe that the benefit of obtaining patents would be outweighed by their expense.

(Well I guess we know now, I wonder why our extensive DD done before the purchase didn't reveal this. At least we might have received patents)