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Message: Pruchased vs Licensed

Billwilke...I agree wholeheartedly...too many things causing confusion not only amongst those of us who have been around awhile but imagine the confusion to a newbie trying to ascertain some of the revenue recognition by the company and who really has purchased a license and who really is just a licensee...and the differences between them.

As far as the February singees are concerned I have never really gotten a grasp on that issue even when I contacted Ken at Hawk and tried to get an explanation from the CEO through him. revenue recognitions eemd very easy to ascertain in the past and they have changed what they report and how they recognize revenue...as compared to simply,when it's signed it goes on the books and is reported in that quarter.



The answer I got was as follows...

"there is not always a correlation between the period when a license is announced and when it is recognized, although that generally has been the case. The Company is avoiding making specific references to which license transactions are included in a given quarter's results, in part to comply with confidentiality obligations, as well as to facilitate a better negotiating position with prospective future licensees.

Regards,

Ken AuYeung, Hawk Associates Inc

Much too confusing and seems very manipulative of the earnings and revenue. I understand if there is only one or two signings in a quarter that revenue reporting in that quarter could be simply estimated by the low number of signees being divided into the reve's...esp. so if one was a big one and one a very small company. On the other hand the differences of a purchaser and licensee could easily be explained as one is lump sum payment and the other has ongoing rev's...now wouldn't that be nice to know for the ability of prediciting future rev's for est. PE's..and I'm sure some of the analysts would love to know that also.

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