There seems to be a number of people who do not fully understand the meaning of the last 8k. Perhaps if we break it down a little and examine things more closely, we van shed a little light on the subject.
The Company granted CCE an exclusive, worldwide, perpetual, irrevocable, fully paid, transferrable and sublicensable right and license in and to all of the Company’s intellectual property, including, but not limited to, all of the Company’s registered patents and patent applications (the “IP License”). The IP License is exclusive even as to the Company, such that the Company no longer has any continuing rights in or to any of its intelectual property. The company did this for a one-time, lump-sum cash payment of $384,000".
This transaction accomplished multiple tasks.
1> It established a maximum value for the IP. The company basically sold the IP for $384,000. In actuality, the value is probably a little less as the costs of maintaining the IP would remain with the company.
2> It removed that intangible asset from the equation in determining how much the total assets of the company were worth when applied against the foreclosure.
3> It precludes possible legal challenges to the use of the IP prior to finalization of foreclosure.
4> It provides the money to pay off junior creditors precluding possible nuisance lawsuits from suppliers.
5> It completely eliminated even the remote possibility of a "white knight" stepping in to save the company from foreclosure.
6> Finally, if there is anything left after paying off the suppliers and salaries, CCE gets to reclaim the "change" through foreclosure.
In the end, the company has no assets and still owes CCE more than $11 million.
It's not easy to just find some fool willing to pay off that debt for the "privilege" of inheriting the holders of 90,000,000 shares, most of whom would dump them in a flash if they could, If Tom couldn't sell a product that was supposedly faster, cheaper, more secure and just plain better than the competition, how do you expect him to do trying to sell a POS?
AI
