Wave Systems Corp. (fka WAVXQ)

[1stnflight]

Accuracy, Payment Terms of Wave bundling revenues

Since not all OEMs are going to release their quantity shipments to the press like STM, and if they do the numbers will likely be rough numbers, not exact ones, the following questions come to mind.

What is the common practice to notify software publishers like Wave of bundling usage for billing purposes. Take STM TPM shipments, is Wave notified by STM warehouse via EDI daily at time of shipment, or is there a software download/CD request made by the MB manufacturer upon TPM receipt. With Intel I assume Wave gives them master cds and each MB they make a copy to bundle with they notify Wave.

What controls are in place to verify accuracy of what is reported to Wave by STM, Intel, Dell?

What are the payment terms? Cash, Due upon receipt, Net 10, Net 30, prepaid/deposit in which case there would be deferred revenue liability (no revenue) in advance of STM, Intel, Dell shipments that would be reduced and booked as revenue once STM, etc. make shipments.