Intellipharmaceutics International Inc. (IPCI)

[Amigo Mike]

Ah,

Wimike, I would disagree with your comment of having no idea of revenues until getting paid. Surely Par is providing sales reports to IPCI. Even IPCI filings indicate such.

Licensing
The Company recognizes revenue from the licensing of the Company's drug delivery technologies,
products and product candidates. Licensing revenue is recognized as earned in accordance with the
contract terms when the amounts can be reasonably estimated and collectability is reasonably assured.
The Company has a license and commercialization agreement with Par. Under the exclusive territorial
license rights granted to Par, the agreement requires that Par manufacture, promote, market, sell and
distribute the product. Licensing revenue amounts receivable by the Company under this agreement are
calculated and reported to the Company by Par, with such amounts generally based upon net product
sales and net profit which include estimates for chargebacks, rebates, product returns, and other
adjustments. Licensing revenue payments received by the Company from Par under this agreement are
not subject to further deductions for chargebacks, rebates, product returns, and other pricing adjustments.
Based on this arrangement and the guidance per ASC topic 605, the Company records licensing revenue
as earned in the consolidated statements of operations and comprehensive loss.

Par provides reports, probably monthly. And IPCI reports the expected licensing amount AS EARNED (not when paid). It is earned when a sale is completed.

Amigo Mike