BioElectronics Chairman Updates Investors - Seite 3

SALES

Company representatives attended the Modern Musculoskeletal Care Symposium this past weekend in Columbus, Ohio.  We were once again invited to exhibit and Dr. Berend spoke to the medical professionals in attendance about “Non Thermal Pulsed Shortwave Therapy for Pre and Post Op Pain”  Our attendance at the show was predicated on the expectation that the use of RecoveryRx will expand through the OrthoAlliance (https://orthoalliance.com/) organization in the next few months.

The Company is continuing talks with major distributors, both internationally and domestically. These talks are in different stages of progress, from discussing final approval and registration, to initial exploration of possible interest. Given the unique advantages of our product offerings, these discussions often take a long time, especially with major distributors that have multiple levels of management review.

POSSIBLE LEGAL ACTION

The Company is exploring entering into legal action against Mundi Pharma South East Asia for breach of contract. They signed a five-year contract in October of 2018 with BioElectronics Corporation, agreeing to purchase a minimum of approximately $14,000,000 worth of product from us over the next five years of the contract. However, they never completed the registration of the products into the five territories that we granted them exclusive distributorship and only took ownership of a small amount of the inventory. We have engaged both local counsel and counsel in Singapore, where any arbitration action would need to take place. The Company is actively seeking financial backing to support this legal action.

SUMMARY

I am happy to report that the Company is still making progress, especially in terms of research. However, we still have a long way to go in terms of generating significant sales. Thus, it is important that we continue to look for strong partners who can take our innovative product into the marketplace and generate the sales that we need to become the vibrant company that we aspire to be, one that is not only profitable, but also provides products that significantly relieve both acute and chronic pain.

Finally, I want to thank our shareholders who have shown support for us over these years. We acknowledge that our progress has been slow at times and that we have yet to deliver the hoped-for home run in terms of profit, but I can guarantee you that the Company remains committed to staying the course and turning our expertise in pulsed shortwave therapy into a profitable company.