In connection with a prior note financing, the Company is obligated to pay a royalty of $20.00 for each entertainment device sold through December 31, 2008. During the three and nine months ended December 31, 2007 the Company incurred royalties of $21,640 and $69,620, respectively.

"That means they paid Royalties on 3,481 evs x $20.00  in the last 9 months = $69,620"   or   3481/9 =  386 units sold per month

For the three month period....21,640/20 = 1082 units 1082/3 = 361units per month

doni