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Technology Stocks : Energy Conversion Devices

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To: Sid Turtlman who wrote (2588)11/6/1998 4:20:00 PM
From: Joe Master  Read Replies (2) of 8393
 
Well you are wrong on one thing. Go back and read the 10K in the section of prepaid royalties. The companies that have paid those do not have any recourse to recieve the royalties back if sales do not materialize. They defer this revenue in any event until the sales occur. At saome point if the sales do not occur they must show this as income at that point.

All of you can argue with me until you are blue in the face but read my lips:
the prepaid royalties are put on the balance sheet not the income statement.
The sale of new stock also goes to the balance sheet. There is no income effect.
Yes if they recieve a lump sum license fee they would take the expenses required to generate (legal and such) as a deductiona and show the balance as income. Period.
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