Wearable Health Solutions Inc (WHSI)

[appalled]

First, Motorbooster was not a known fraud in advance of the investment made by MDHI. The fact that the claimed test results were bogus came out several months after the deal was made. Litigation would probably have been more expensive than walking away considering decent legal representation in the this area runs $350 an hour with top lawyers charging $500 or more an hour.

Second, we don't know the terms of the deal that "released" those units to the reseller. Is it an upfront payment? Does MDHI only receive the monitoring fees once the unit is sold? Does the end user's purchase include 6 months of service like the Costco customers get? If the purchase includes monitoring, how often does the reseller make payments to MDHI? Monthly? Weekly? Daily?Quarterly?

The only thing we can even guess at is if there is an upfront payment. The answer is probably not. Other than the current overseas sales, MDHI does not normally sell the medipendants themselves. Other than the Costco arrangement which includes 6 months of monitoring, MDHI sells the monitoring service and provides the equipment for free.

As the SEC filings continue we will begin to see the impact of these units reaching the end user. Only once we receive that information will the PPS be affected.