Electronic Cigarettes International Group Ltd fka ECIGQ

[DFH84]

Thanks for the clarification. So if I'm getting this right:

Settlement: Should show up in Q1 report as a separate line item for a one time cost.

Royalties: Paid out on sale of e-cig and vaping devices (not liquids). Should show up in Q1 report as a reduction in bottom line profit.

My point is, whoever was using the settlement/royalties to argue for Q1 showing a lower revenue is mistaken, because no matter which way you cut it, these payments are not going to affect the revenue value shown, it will just affect the bottom dollar profitability. The way I see it, it's entirely possible to see a larger rev (potentially $17M?), but our profit margin on that revenue will show as lower due to the royalties paid moving forward.