NeoMedia Technologies, Inc (NEOM)

[Poptech]

rufio:

I think you are talking about a joint development agreement.

When you start a joint venture, you create a third entity owned by the two companies. The cash infusion would go into the third company and it would have a separate staff. Each company would provide cash and assets to the third company and share it is profits in relationship to their ownership.

NeoMedia has no assets that it can contribute - they are all locked to NeoMedia and YA. So they can contribute a license to patents and maybe code. However, the new company needs a CEO, CFO, Chief of Development, Quality control, etc. so the new company needs cash which NeoMedia could source from YA.

Nantworks is an incubator. So Nantworks provides a small amount of cash (less than $50,000), the Nant brand, office space, conference rooms, advisers, and maybe some infrastructure equipment such as wireless and office phones. The companies that sign up provide Nant income for the life of the venture.

A joint development agreement could mean NeoMedia gets paid to develop products for another company. They hire a team and are paid as they meet client's milestones. So, NeoMedia would receive the revenue and the third part was receive whatever is developed.