Private Sub object_LoopItem(LocalFile, RemoteFile, ItemType, Skip)

The LoopItem Event syntax has these parts:

This event fires as result of GetFiles, DeleteFiles, PutFiles and LoopFiles methods. It provides information about each item in the sequence (meaning file or folder) before actual operation on that item is executed - allowing you to optionally Skip the operation for this particular item.
Since both LocalFile and RemoteFile arguments can be changed, you can also cause operation to be performed on completely different files than it would be in original operation.

For example, you can use LoopItem event like this:

Private Sub Sftp1_LoopItem(LocalFile As String, RemoteFile As String, ByVal ItemType As wodSFTPComLib.DirItemTypes, Skip As Boolean)
    If ItemType = typeDirectory Then
        Skip = False
    Else
         If Right$(RemoteFile, 4) = ".txt" Then
            Skip = False
         Else
            Skip = True
         End If
    End If
End Sub

which means that only files ending with ".txt" are copied - others are skipped (but directories are created, just in case).
You can also use it like this: we will copy all ".txt" files to the same directory, no matter where they originate from:

Private Sub Sfp1_LoopItem(LocalFile As String, RemoteFile As String, ByVal ItemType As wodSFTPComLib.DirItemTypes, Skip As Boolean)
    If Right$(RemoteFile, 4) = ".txt" Then
        LocalFile = "c:\mytxtfiles\file" & Counter & ".txt"
        Counter = Counter + 1
        Skip = False
    Else
        Skip = True
    End If
End Sub

above sample will not create directory structure at all - but still would copy all .txt files to differently named files on local disk.