NeoMedia Technologies, Inc (NEOM)

[brewskih]

thats right Boknows........They sold them a license to use and co market Qode, plain and simple. And at this stage of the game that license was probably pretty cheap, like the Airclick and Virgin licenses.

Had they partnered with this group and shared the revenue that would be a different story. And yes it will give NEOM some much needed cash, but I expect it will be minimal. And a license agreement is a flat rate price, not a continual revenue generator, unless it has to be renewed yearly, so this will appear one time on the financials more then likely.

It is possible they agreed to some type of revenue generated licensing agreement, but thats usually not the case in any license. The company buying the license has the use of the technology for a flat annual fee.

And when I spoke above about non revenue generating and showing up as a one time fee, thats not technically correct. If they purchased a 1 year license, I believe NEOM has to prorate the revenue on a monthly basis as the agreement is being used.