Gross revenue from licensing and service fees increased by $456,000 or 100% to $456,000 compared with $-0- in 2003.
During 2004, the Company earned gross revenue from an agreement signed with H-Quotient, Inc. (HQNT) which involves the sale of product, licensing and service fees. The initial amount earned in 2004 reflects 400,000 HQNT restricted common shares which are reflected at December 31, 2004 at 50% of fair market value.
Gross revenue from product sales decreased in 2004 by $511,757, or 31%, to $1,150,154 compared with $1,661,911 in 2003. The decrease in sales revenue was due primarily to a decrease in sales in the SunSwipe ™ line. We continue active promotion of our product line through trade-show presentations and direct calls on both existing and potential customers. Our goal is to continue to expand our product lines and we anticipate new products, which are scheduled with various releases this year, will generate new revenue in this and future years. In addition, we continue to pursue strategic alliances with other corporations that have existing distribution networks. Our goal for these alliances is to create immediate distribution and fulfillment avenues for our products, while focusing on our capital resources.
• During 2004, the Company had a Realized Gain on Investments of $216,173, comprised of (i) sale of 703,369 H-Quotient, Inc. (HQNT) common shares for a net realized gain of $511,079; (ii) sale of 46,875 common share warrants for a realized gain of $51,094; and (iii) the write-down of investment in 400,000 common shares of restricted HQNT stock for a realized loss of $346,000. During 2003, the Company sold 876,000 H-Quotient, Inc. (HQNT) common shares and realized a net gain of $84,141.
Form 10KSB for VERIDIEN CORP
31-Mar-2005
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