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Technology Stocks : Energy Conversion Devices -- Ignore unavailable to you. Want to Upgrade?

To: fred whitridge who wrote (2596)	11/8/1998 12:18:00 AM
From: Michael Latas	Respond to of 8393

Fred, I'm with you. We need the specific details of this eight million dollar agreement before we will know how to allocate the funds for accounting purposes. We had been receiving five million dollars for the most recent consumer battery licenses. However, it had been stated that future licenses would sell for six million. Whatever the case may be, five or six million, the plot begins to thicken, because it may include prepaid royalties for a particular dollar amount, that will be treated different from the pure license fee, which will be income for the quarter it is received. There is no assurance that Sanyo paid either five or six million. That remains to be seen. The final question is how much stock did they purchase. And Fred, you're right, we will probably have to wait until forty-five days after the quarter to get the answers. We should show a profit for the quarter when the cash from the license portion comes in, assuming we receive a normal five million dollar license fee. The last question unanswered, and in my opinion the most significant one is the royalty amount, along with the length of the license. Regards.