Replies to post #26142 on Vision Industries Corp. (fka VIICQ)

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4. Events Precipitating the Chapter 11 Case.

Debtor’s financial difficulties were primarily caused by a lack of operating capital. In the months leading up to the bankruptcy filing, Debtor’s principals sought permission from the largest
debt and convertible note holders to increase Debtor’s authorized share count from 500 million to 10 billion common shares. The increase in authorized shares was requested by management to enable Debtor to seek further funding to continue operations. The request was not approved, which made it impossible for Debtor to raise capital to fund operations. Debtor anticipates that it will secure substantial post-petition DIP financing pursuant to ongoing negotiations with several potential investors. Once DIP financing is secured, Debtor will propose a plan of reorganization to restructure its debts and emerge from bankruptcy as a profitable entity.

5. Debtor’s Business Reorganization Effort

Debtor intends to secure post-petition DIP financing by the end of October 2014 to, at minimum, remain post-petition current on lease payments to its landlord, compensate court approved
professionals associated with this Chapter 11 case, and obtain an order confirming Debtor’s Chapter 11 a plan of reorganization. It is anticipated that if a plan is confirmed, it will come
as a result of a substantial loan or a capital infusion. Should Debtor be unable to obtain such financing, Debtor will consider selling its assets to pay creditors.

VIICQ