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Biotech / Medical : NNVC - NanoViricides, Inc.
NNVC 1.260+0.4%11:49 AM EST
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To: HardToFind who wrote (11970)2/27/2019 8:41:00 PM
From: old 'n cranky  Read Replies (1) of 12873
 
I can't believe what I just read:
including a 15% royalty on sales (net of costs)

That is absolutely mind-boggling. Here's the way it appears to me:
There was some question in your mind about what the term "net sales" meant as it appeared in the "previous" amended license. I told you in no uncertain terms what net sales meant to virtually every accountant and honest lawyer on the planet...it's simply the dollar value of billings for goods and services less any deductions for returns, allowances or discounts. It is distinguished from "net profits" by the fact that the net profit is derived by the deduction of the costs of materials and labor, if any, required to make the goods sold and overhead costs such as rents, salaries, professional fees, R&D, office supplies...operating costs.
You asked for a clarification at the shareholder meeting and the response you got should probably be reviewed.

Now look at what Emperor Diwan has done. Unless I'm imagining things he's taken advantage of this opportunity to pretend that the term "net sales" in the existing Amended Agreement really means "sales (net of costs)". Muddying up the waters.

It's shameful. Even if it doesn't come up until some day years down the road, perhaps in a case brought by some downtrodden lead plaintiff shareholder, people should know what the real deal is NOW.

You were obviously very right to ask what the term meant. You might want to do it again and get the understanding in writing somehow, because 15% of "sales (net of costs)" can be expected to be a helluva lot less than "net sales". Just in case there are any sales it's the kind of thing that should be cleared up ahead of time and right now it's a moving target..
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