I calculate edigs take at 705,600 on the LG settlement.

What does not make sense, e.Digital being responsible for the whole tax consequence, is it figured 40/60 as well. If it is, can we add the difference back to e.Digitals 705,600?

If the above is not the case, then the settlement is not 1,600,000...its 1,336,000 and e.Digital is just forwarding the tax consequence for convenience? Something does not seem fair as the split is not 50/50.

10Q

1) LG...Income tax expense of $264,000 consists of foreign taxes payable on patent license revenue...40/60 split?

40/60 split after.... legal expenses 10%(160,000)?

1,600,000 - (Tax)264,000(edig 158,400/DM 105,600) = 1,336,000 - (legal)160,000 = 1,176,000... Edig 705,600 + 105,600 =811, 200 / DM 470,400

doni