Bioelectronics Answers Shareholder Questions (OTC:BIEL)

Answer – Yes – We will without a doubt be holding shareholder conference calls.

11. I’d like to know how BIEL used the money they got from the new O/S shares past months. It might be around 30 to 40 million $ in 3 months. It would be fair to tell us what this amount is and what it was used for ?

Answer – There was not $30 to $40 million raised in the past 3 months. Not even close. The increase in shares was mainly related to the conversion of debt into equity. We will be reporting the actual amount of money raised when our auditing firm produces results for the September quarter. I do not have an actual date as of yet as the audit is ongoing.

12. How is the audit coming along? And what exactly is the purpose. Is it to move to OTC.BB ?

Answer – The auditors were in the BIEL office this week and it is ongoing. We are conducting an audit for several purposes – first is that our investors have asked us for the audit – second, as we have stated previously, we want to move off of the pink sheets and onto a different stock trading venue. We have specific plans to do this, but it is inappropriate at this time to discuss in detail.

13. What’s the status of the Class II petition ?

@@Adsense@@ Answer – We do not know. The FDA has not gotten back to this issue – while we are not sure of the exact reason we suspect it is simply a workload issue on their part as all Class III devices cleared under 510K must either be reclassified to Class II or undergo a time-consuming and expensive PMA process. We, and our law firm, fully expect a reclassification to Class II, but we simply have not heard back from FDA.

14. When do you expect to report Q3 earnings/sales ?

Answer – I cannot provide you a date at this time is the auditors are currently working on the numbers.

15. Are there any future plans to reduce the O/S once revenue starts coming in ?

Answer – There are no specific plans to do this – stock buybacks are usually performed by cash rich companies with limited growth prospects. The theoretical argument is: does the company or the shareholder have better investment uses for the cash. We believe, as we think our shareholders also believe, that we have better uses for the investment of cash. We have a great set of products and we believe demand will be very high.

16. What is the deal with Scottrade? This is very bad for the company that people cannot buy on SC. Also, someone reported the same problem with Charles Schwabb starting today.

Answer – Scottrade limits the trading of many pink sheet stocks, not just BIEL. It is more expensive for brokerage firms to perform back office operations relative to pink sheet stocks. Our understanding is that Scottrade simply does not want to incur these additional costs and therefore chooses not to trade certain securities. There’s really nothing we can do about this – but the situation is not specific just to BioElectronics.

All of us would really appreciate if you answer these questions. This will go a long way in boosting investor confidence as right now lot of longs who entered late are losing confidence.

-Thanks and Regards

Certain statements in the above may contain forward-looking information within the meaning of Rule 175 under the Securities Act of 1933 and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the companies, are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things, the following: general economic and business conditions; competition; unexpected changes in technologies and technological advances; ability to commercialize and manufacture products; results of experimental studies; research and development activities; changes in, or failure to comply with, governmental regulations; and the ability to obtain adequate financing in the future.

Joe Noel
Emerging Growth Research, LLP
(925) 922-2560
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