InterDigital Inc (IDCC)

[The Count]

Data, no restrictions on the cash

IDCC receives the prepayment in exchange for use of their IP. Since there is no imaginable way for IDCC not to be able to fulfill that obligation and no additional work required from IDCC, there would be no reason for the licensee to put in some sort of clause in the contract requiring IDCC to set aside any of the prepayment to insure performance. Absent any specific contratctual obligation, there is no restriction on the funds.

The revenue will be recognized as the company has indicated (ratably over the life of the contract, unless the licensee exists the business, in which case the remainder is recognized at that time). Expenses are recognized the same whether it comes from "pre-payment cash" or "regular cash". I think they make a different sound rattling around when you shake the bank, but are not treated any different for accounting purposes.

Same rules for public or private companies.