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Message: email to Fred and Patent Income Analysis

Thanks Fred,

I hope now that we have established that the Patent 108 has the blessings of the USPTO, we can start by asking for at least 10 fold amounts as compared to the settlements to date for the last two years including this latest 9 months.

I also hope that you have plans to ask for millions form those large companies that have made hundreds of millions or billions from infringing our patents.

I have revised the data I sent to you to include a more detailed analysis for each year and the estimated net from the settlements after all costs are included, again based on the data in each of the 10K annual reports.

I hope you find this of interest and would love to see those net values up by multiple factors for the remainder of this fiscal year and the ensuing years.

If one estimates that those companies that infringed in total made billions, we should be collecting a few hundred million, just as through we would have been receiving royalties from many for a decade or more taking into consideration the future.

The numbers may not be totally accurate, but reasonable enough to use the data as a guide as to what has transpired over the last 7 years.

Richard

Edig Patent Analysis

Dollars shown in Thousands

Based on data from the Annual, 10K, report

Gross Rev

Net Rev

Year

Revenue

Cost

Gross Profit

Licenses

Per License

Per License

Total

$20,154

$8,104

$12,050

69

$292

$175

2008

0

0

0

2009

$10,115

$3,984

$6,131

6

$1,686

$1,022

2010

$1,600

$615

$985

4

$400

$246

2011

$231

$111

$120

1

$231

$120

2012

$4,100

$1,412

$2,688

8

$513

$336

2013

$12

$326

-$314

0

$0

$0

2014

$2,045

$671

$1,374

22

$93

$62

2015*

$2,051

$985

$1,066

28

$73

$38

* 9 Months

$1,272

611

$661

5

$254

$132

$779

374

$405

23

$34

$18

*5 accounted for 62% of the revenue

Your calculations (highlighted) below are accurate. Plus 28 to date during the year 2015, to total 69.

Fred

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