Avistar Communications Corp (AVSR)

[The Claw]

$AVSR and Sony playstation wow!!! In July 2006, the Company entered into a Patent License Agreement with Sony Corporation (?Sony?) and Sony Computer Entertainment,
Inc. (?SCEI?). Under the license agreement, the Company granted Sony and its subsidiaries, including SCEI, a license to all of the Company?s
patents with a filing date on or before January 1, 2006 for a specific field of use relating to video conferencing. The license covers Sony?s video
conferencing apparatus as well as other products, including video-enabled personal computer products and certain SCEI PlayStation products.
Future royalties under this license are being recognized as estimated royalty-based sales occur in accordance with ASC 985-605. The
Company uses historical and forward looking sales forecasts provided by SCEI and third party sources, in conjunction with past actual royalty
reports provided periodically by SCEI directly to the Company, to develop an estimate of royalties recognized for each quarterly reporting
period. The royalty reports the Company receives directly from SCEI is delayed beyond the period in which the actual royalties are generated,
and thus the estimate of current period royalties requires significant management judgment and is subject to corrections in a future period once
actual royalties become known