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Non-Tech : Bill Wexler's Dog Pound
REFR 1.730+10.2%Nov 11 3:57 PM EST

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To: Kevin Podsiadlik who wrote (7966)6/21/2001 12:41:28 AM
From: BinkY2K  Read Replies (1) of 10293
 
Kevin, why are you debating?

Nancy offered a deal to Wexler. Are you Wexler? Would you like to take her up on the bet instead?

Wexler has been absent here since the discussion started.

I have no interest in the bet but it would be trivial to devise a clear set of guidelines.

In a nutshell, the company has said it would make more than it spends within an allotted maximum time. So, if their earnings report shows earning 10 million and spending 5 million and there are no odd tricks like one-time events that are not expected to continue, then Nancy wins. Specifically, you must accept any kind of royalty income if that company paying it states it expects to continue selling the product that finances the royalties. Interest on investments like T-bills counts too.

Make similar agreements on what expenses will count. For example, the company paid a billion won ($750K in U.S. dollars) for about 6% of the new company Hankuk formed, SPD Inc. Is something like that an expense? I see it as an investment that will earn them money.

We know the company spends about 4 million a year. Chances are expenses will rise since they may do additional research and marketing and advertising and so on. That is why I chose 5 million. If licensees sold between 50 million and 100 million in end products, the company makes that 5 million. They can also make money on license fees and minimum royalties from companies who pay now, such as VisionEase, even if they are slow in getting products out. What are the odds more licensees will sign up if current licensees are minting money.

Feel free to make a wager with nancy in place of Wexler. Check with him to make sure it is binding. LOL!
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