During the three months ended September 30, 2015, the Company recorded $225,000 of deferred revenue. This represents full payment pursuant to the previously announced funded development agreement with Nitto Denko Corporation (the “Agreement”). The Agreement does not require specific deliverables by the Company, however it does place certain restrictions on the Company’s ability to communicate with a limited number of specifically named businesses during the four month term of the Agreement. Management does not believe that the restrictions have a material negative affect on the Company’s business prospects.
Some thoughts:
Why would Nitto care who we talked to with the exception of another film maker? Since it took us 6 years to figure out we needed one, I doubt we would look for another once we landed one...especially with the quality of this film partner. Is this 4 month time period not only an evaluation period for QDX film, but also for a buy out? The cleaning of books and last 8K (payment to officers) elludes to such a possibility. Thoughts of probability?
