Eternal Image Inc (fka ETNLQ)

[Calfire]

Sure go ahead, assist me in interpreting the 8-K that mentions Matthews manufacturing products for EI and selling them to EI, and let me know how that is a revenue for EI rather than a liability.

OK...I got confused on the 8k the first time I read it...so I am giving you the benefit of the doubt here.

The LOU states that Matthews will manufacture and sell the products to EI...AND buy them all back. That is where EI gets the revenue. EI will probably never even receive the products. Mathews will make them and send them to THEIR distributors.

What we don't know is the difference between the two price points and how big the check to EI is going to be. But the revenues to EI are guaranteed in the LOU...Get it now?...EI should get something decent back from the deal because they have committed to the VOF license 5 years and Matthews committed to the product line for 2 years...Risk equals reward in business, right?

IMO, Matthews has no more business risk than EI on this deal...they will be able to sell these products for profit over time...or at discount if not as popular as expected. EI has $600k on the line for three years after the Matthews LOU expires. Keep in mind the volume of business Matthews does compared to EI when you digest a $600k risk to EI.

From the 8k one last time...

The specific number of product units that Matthews will manufacture and sell to the Company during a contract year is as follows:

a. 250 Star Trek Urns (which Product and design have been previously approved);
b. 720 Vatican Observatory Urns;
c. 200 Vatican Observatory bronze memorial pieces; and
d. 2,000 Vatican Observatory caskets.

The specific number of products that Matthews will repurchase from the Company during a contract year per quarter is:

a. 62 Star Trek Urns (plus an additional 2 units in the fourth quarter);
b. 180 Vatican Observatory Urns;
c. 50 Vatican Observatory bronze memorial pieces; and
d. 500 Vatican Observatory caskets.