ITRU accepts stock in customers instead of cash.
In connection with our strategy to promote widespread deployment of our software, through June 30, 2000, we have on four occasions received initial license fees for our Commerce software in the form of minority equity positions in the licensees. We received approximately 1.7 million shares of common stock from one licensee, 882,000 shares of common stock from the second licensee, 148,300 shares of common stock from the third licensee, and 579 shares of common stock from the fourth licensee, which we believe represents approximately 10%, 18%, 5%, and 14% of the outstanding shares of the licensees as of the license date. Because the entities were recently formed, privately-held companies and we were unable to obtain sufficient evidence of the fair value of the common stock of the entities, we did not record revenue or deferred revenue from the license fees. We are obligated to provide unspecified upgrades and new releases, on a when and if available basis, to the licensees over a two year period under the agreements for additional fees. We are not obligated to provide any funding to the licensees for the development of the licensees' software. In the future, we may enter into other equity payment arrangements. See Note 3 of Notes to Condensed Consolidated Financial Statements.
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