American Green Inc (ERBB)

[neilbolton]

That is what I posted too. That is the Royalty MediaMax pays to SunnComm. It is equal to sixty percent (60%) of any and all gross licensing revenue earned by MediaMax Tech.

That should be pretty clear. The licensing revenue goes to MediaMax Tech and they pay a Royalty equal to 60% of that amount.

Because they pay a Royalty equal to 60% of licensing revenue doesn't mean they show only 40% of Licensing Revenue in their accounts. They are two separate things. Licensing Revenue is income and the Royalty is an expense.

Just assume for a moment that there was no Royalty payment to SunnComm, but that Bill Whitmore is entitled to 10% commission on Licensing Revenue received. You would not show Licensing Revenue as 90% of what was actually received, but would show the full amount received with Bill's commission as an expense under marketing expenses.