Well that 8-k was an interesting read. Looks like MAXD found some party to drop $20 million into a mining operation that has proven assets, potentially worth trillions, of which MAXD gets 50% of the after-tax profits, in exchange for 300 million shares of MAXD. At least that's how I interpreted it.
Wonder what the $20 million investor gets out of the deal?
As far as the potential of creating a paper currency with embedded gold, patented biometric security and backed by mining assets, that might sound a little extreme, but no further extreme than buying cryptocurrency that has no backing at all, except for a non-centralized block chain that the centralized middlemen are still trying to figure out a way to control!
The first thing I'll look for is mining revenue from after tax profits from mining. Since the $20 million is supposedly immediately available, they could get a small operation up and running in 3-6 months, depending how hard it is to get equipment to the mine location.
I'm still expecting the OS to blossom to about 14 billion shares with the existing convertible debt but a settlement from the indirect lawsuits should easily make up for that.
After all, YouTube itself will do almost $30 billion in revenue in 2021 alone! If a patent infringement lawsuit is in MAXD's favor, via co-ownership of the patent portfolio, MAXD should get a very significant cut, even it's only a couple of percent of revenues each year.
But total lost revenue from all the players that have infringed up the H.264 video compression standard over the past decade is likely well over $100 billion in revenue, of which damages could be sought against for willful infringement.
Just a 2% license fee from that would be $2 billion in damages from past lost revenue, plus 2% from tens of billions in revenue going forward. That kind of award would dwarf even 15 billion outstanding shares.
Of course this all speculation, but since we have seen a settlement offer in the past, back in 2016, that was turned down, it's seems like it's not an issue as to whether or not the patents were violated; it's more like an issue of negotiating final terms.
In any case, it's still just a huge jackpot, slot-machine style play for me. I like the potential. It's just my opinion; not investment advice.
