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To: RAVEL who wrote (25749)	12/22/1998 8:53:00 PM
From: Captain Jack	Read Replies (1) \| Respond to of 31646

JDN -- jj on TV. on jan 1 is the good news, the mkt is only open 1/2 day then the weekend. could they possibly have only used questions doug prepared? why, because the price rose a little and needs to retract?

To: RAVEL who wrote (25749)	12/23/1998 9:14:00 AM
From: JDN	Respond to of 31646

Dear Ravel: "revenue recognition"-- Whether or not the up front licensing fee is immediately recognizable depends upon the terms of the agreement. For instance, if the fee is non refundable, no matter what, and the continuing royalties are NOT applyable against the fee then I would think it should be recognized UP FRONT. On the other hand, if it is partially refundable based upon secured business etc or some other basis, then it should be amortized over the terms (usually life) of the agreement. Not really that complicated and their CPA firm should be able to give them a quick answer on this. JDN