No, what I showed was that the License Agreement called for $1 million in an Upfront License fee ($500K + $500K) and that AMTRON “confirming that the $1M USD upfront license fee would be paid to the Company on or before January 31, 2019.”
But the $1 million wasn’t paid in January, it was only partially paid ($500K) in March and they confirmed that they were still owed another $500K.
I also showed that Amtronics was required to purchase two reactors for $1 million and that “the shipment of these two units clears the payment obligation for the first $700,000 of the sale amount.”
Math: $1,000,000 + $700,000 = $1,700,000
The other math “problem” is adding the $500K in contract liabilities from the 6/30/19 10-K to the $1,197,973 in contract liabilities from the 12/31/19 10-Q for total of $1.7 million.
The $1,197,973 already includes the $500K since the contract liabilities are reported as a cumulative number in the 10-Ks/Qs. But to properly understand the numbers, you need to look at the numbers in the CONDENSED CONSOLIDATED STATEMENTS table and the CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS table.
The 10-K reported the $500K paid in March as contract liabilities for the year ended June 30, 2019 in both tables.
The 10-Q ending 9/30/19 reported total contract liabilities as of Sep 30, 2019 of $1,197,973. But if you look at the cash flow table on page 6 of the Q, that table reports contract liabilities for the three months ending Sep 30, 2019 of only $697,973.
Math: $500,000 + $697,973 = $1,197,973
The 10-Q ending 12/31/19 also reported the same total contract liabilities as of Dec 31, 2019 of $1,197,973. But if you look at the cash flow table on page 6 of that Q, that table reports contract liabilities for the six months ending Dec 31, 2019 of the same $697,973 as previously reported for the 3 months ending 9/30. Therefore, there was no additional payment made in Oct-Dec.
With a little rounding, the contract liabilities represent a payment of $1,200,000 to QMC in 2019. which is $500,000 less than the $1,700,000 of payment obligations due.
If Amtronics had actually paid $197,973 in interest for the late payments, then to me that amount should have been recorded as payment of interest not added as an additional amount of contract liabilities.
So it appears to me that the initial payment for the two reactors may have actually been paid in July but it appears that only half of $1,000,000 Upfront fee was paid. Why? I don’t know.
But I’m not surprised that QMC only listed the payment of the initial $500K Upfront fee as a 2019 accomplishment in the Jan 2020 Update and failed to mention what happened to the remaining $500K balance.
“Amtronics screwed us out of $500K” is not really an accomplishment that you want to broadcast to shareholders.
Wouldn’t cutting the Upfront fee in half, if it had been mutually agreed upon, have been a material event that would have required reporting it in an 8-K or one of the quarterly reports? I think so.
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