on the IFE product, APS is paying all manufacturing cost including parts and labor.
I don't believe that the 10K supports that concept. It says that EDIG is to manufacture the devices, but when it says what kind of revenue it expects to get, "manufacturing costs" is not mentioned. Perhaps it was an error or perhaps the details aren't worked out.
In October 2002, we announced a development agreement with Aircraft
Protective Systems, Inc. ("APS") to develop and market a portable, hard disk
drive-based In-Flight Entertainment, or IFE, system under contract for a leading
U.S. airline. The agreement specifies that we will manufacture and sell the
customizable digital video player through APS. The agreement includes provisions
for non-recurring engineering ("NRE") fees to be paid by APS to us for design
services plus licensing fees and royalties. To date, we have received $50,000 in
payments under this agreement with respect to NRE fees only, of which $50,000
has been deferred at March 31, 2003.
Remember APS is just a part-time home-based business owned by an (admittedly enterprising) cargo handler for Alaska Air. How would Bill Boyer fund all of this? From what I understand, the airline is not going to purchase the units from APS, but is going to rent them to passengers and get some of the rental income.
