Value Microcaps Free-For-All

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HWEB-DCU

I had this on my watchlist and bought in today. I would assume we will see this $350,000 show up as a 1-time gain in DCU's next earnings report? I wrote an email to IR asking, among other things, how many Whirlpool models will use this technology, and how soon will royalties be reflected in the financials. No response yet, but if I can get any additional info from them, I'll post it here.


On January 3, 2005, DRYCLEAN USA, Inc. (the "Company") entered into a Patent License Agreement with Whirlpool Corporation ("Whirlpool") in which the Company granted Whirlpool an exclusive license until December 31, 2008 and thereafter a non-exclusive license to make and sell laundry appliances incorporating the Company's patent applications and other intellectual property related to fabric treatment technology for improving the drying and refreshing of garments in home clothes dryers. In consideration for the grant of the license and to reimburse the Company for its time, effort and development costs, Whirlpool is to pay the Company a $350,000 fee. In addition, Whirlpool is to pay the Company a per unit royalty for dryers using the licensed technology that are sold during the three year period following the first sale following commercial production of dryers using the license technology, as well as a to-be-negotiated royalty with respect to the sale of licensed after market kits (to retrofit existing home dryers) for which the Company has retained marketing rights but granted Whirlpool a non-exclusive license.

http://www.smallcaps.us/Companies/036_DCU/Introduction.htm