Note 5 – Agreements and Transactions with VIE’s

The Company sells INVOcells to its consolidated and unconsolidated VIEs and anticipates continuing to do so in the ordinary course of business. All intercompany transactions with consolidated entities are eliminated in the Company’s consolidated financial statements. Pursuant to ASC 323-10-35-8, the Company eliminates any sales to an unconsolidated VIE for INVOcell inventory that the VIE still has remaining on the books at period end.

The following table summarizes the Company’s transactions with VIEs:

 Summary of Transaction with Variable Interest Entities

The Company had balances with VIEs as follows:

 Summary of Balances with Variable Interest Entities