ALYA Cost cutting system via software as well as security Message Board

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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security

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To: Dr. Jay who wrote (2440)	5/12/1999 9:09:00 AM
From: Techno	Read Replies (1) of 2534

I have received the audited financial statements for September 30, 98 in the mail this week. Have not had time to go through Note 11 on software rights to understand the implications. It appears the have sold the software (for a note of 15 million due in 2007 and $1 million cash)and received an exclusive right to Market the software. The Company receives a management fee annually equal to 55% of the net revenue in the US and 45% in Canada. The balance of the revenue goes to the owners with 45% to repay the note and a blance as a return to the owners. It really does make the arrangement confusing. Why would the Company do this? This looks to me like they gave 50% of the Company away for $1 million. The Marketing rights only go to 2007.

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