Skullcandy will continue to produce products as usual. They will introduce a new line that uses SonoFit technology. SkullCandy will design, manufacture, and distribute the product while Sonomax retains a royalty. As I recall, Sonomax will get $2.50 per ear.

The significance:

1. No manufacturing and production cost for Sonomax
2. No advertising and promotion cost for Sonomax
3. Cash straight to the bottom line
4. Dealing with an established market share (100 million sales per year)
5. Dealing with a company that has lost of celebrity endorsements

Sonomax does not want to produce and distribute products, they want lucrative royalty streams.