Wearable Health Solutions Inc (WHSI)

[appalled]

Although it has been speculated that the arrangement between MDHI and Costco is for drop shipment, I have seen no proof of this. Both the terminology in the 10-k about Costco and the revenue drop from fiscal 2012 to the first 2 quarters of fiscal 2013 lend credence to the arrangement being one where Costco is a value added re-seller. This also fits with Costco's reputation as having the best customer service in membership oriented retail business as they would lose control of the customer service in a drop shipment agreement.

It is also completely possible that once MDHI established customer service that lived up Costco's reputation the agreement would switch to a drop shipment arrangement.

Again I have seen no proof either way but the information we have been given would indicate it is not--or at least did not begin as a drop shipment arrangement.