Nate's Food Company (NHMD)

[surfkast]

The royalty verbage is an accounting trick. Nate will not lose any money.

"December 04, 2014 09:00 AM Eastern Standard Time
LOS ANGELES--(BUSINESS WIRE)--Nate’s Food Co. (OTC:NHMD) announced today that it has established a dividend policy for its common stock shareholders. The Company is finalizing its forecasts, pricing and cost of goods. As part of this process, the Company has decided to establish a quarterly dividend of $0.025 - $0.10 per can of product sold. Additionally, the Company was able to reduce its license agreement from 7.5% to 3%."

The Company shall pay a royalty equal to Seven and One Half Percent (7.5%) of the Gross Revenue from the licensed products. Gross revenue is defined as total revenue minus discounts and allowances. In addition to the royalty, the license requires that the Company pay a $7,500 monthly fee beginning twelve (12) months from the execution of the license agreement. Thereby the fee shall begin on June 1, 2015.

The Company shall pay a royalty equal to Three Percent (3%) of the Gross Revenue from the licensed products. Gross revenue is defined as total revenue minus discounts and allowances. The license requires that the Company pay a minimum monthly fee of $7,500 beginning twelve (12) months from the execution of the license agreement which is against the 3% royalty. Thereby the fee shall begin on June 1, 2015.