CRKT - Bouf do you still cover CRKT? What's the deal with the huge contract obligation listed in the 10Q? thanks in advance.
>>In December 2002, Cirmaker Taiwan entered into an "Investment and Cooperation Agreement" with IDN Telecom, Inc. and its affiliated company Ve Cast, Inc. (collectively "IDN"), whereby Cirmaker Taiwan agreed to manufacture set top boxes in accordance to IDN's specifications (technology), which are to be sold by IDN through its various affiliations in PRC. The agreement specifies that the Company make a total investment of $25,000,000, with an initial investment of $5 million in 2003 and $20 million during the year 2004. This total investment is contingent on IDN making total sales of 4,000,000 units of set top boxes by the end of 2006 and Cirmaker Taiwan attaining a specified minimum profit on these sales. The Company is required to manufacture and deliver to IDN a minimum number of set top boxes by certain specified delivery dates. This agreement remains in effect even though the Company has not made the specified $2,000,000 partial investment, that was required by this agreement by June 30, 2003. For the nine months ended September 30, 2003, the Company sold 180 set top box units for $11,960<< |
