Whatever, Tommy.
Do you need everything spelled out for you? You want to get nasty, I won't even.
My point is this, I anticipate that any licensing and royalty revenues generated by e.Digital through their OEM partnership with DigitalWay (note I am assuming those espousing this relationship have already received confirming inside information) will be of similar dollar figures generated from Musical and B&O.
In December 2001, we signed a royalty-bearing licensing agreement with Hong Kong manufacturer Musical Electronics, Ltd. (“Musical”). Under the agreement, Musical licensed technology from us for use in Musical’s OEM products. The agreement calls for Musical to pay us licensing fees as well as per-unit royalties. On December 3, 2001, Musical announced that its first product, the Classic XP3, created under their licensing agreement with e.Digital, would be sold through Circuit City, a national consumer electronics retailer. To date, we have received $17,736 of licensing revenues and have recognized a total of $17,736 as revenues under this agreement. In addition, we have received $50,000 with respect to NRE fees, of which $31,666 has been deferred at December 31, 2002.
A low end product sold in the second largest consumer electronic chain, two Christmas shopping seasons, and only generated a pittance to e.Digital in licensing fees. Enough to almost cover about two months of Alfred's salary.
In July 2001, we signed a royalty-bearing licensing agreement with Bang & Olufsen Multimedia A/S (“Bang & Olufsen”), a premier European electronics, telephony and audio/video manufacturer. Under this licensing agreement, we customized and provided Bang & Olufsen a MicroOS™ based custom product platform for use in their branded music product line. To date, we have received $75,000 under this agreement with respect to NRE fees only, of which $45,706 has been deferred as of December 31, 2002. The first product developed under our licensing agreement (the BeoSound 2 digital audio player) became available to consumers in the United States and Canada in late June 2002, and in European markets a few weeks later. Bang & Olufsen sells their branded products through exclusive retail stores worldwide. To date, we have received $52,335 of licensing revenues and have recognized a total of $52,335 of revenues under this agreement.
A premier brand name, one holiday shopping season, available to consumers in United States, Europe and Canada, and licensing revenues generated by e.Digital that covers less than six months of Alfred's salary.
e.Digital's ballyhooed licensing and royalty based business model, which has attracted two fairly well known brands, has generated to e.Digital the overwhelming sum of $70,071 in revenues attributable to licensing and royalties. This figure covers about seven months of expenses related to paying the CEO of the company. Sad. So sad you and others accept this abuse, raising nary a finger in demanding the management be gutted.
Maybe the technology just isn't worth anything. Yup, has to be considering the company generates revenues equivelent to a dry-cleaners in licensing fees. Cleaners. Taken to the. Laundry. Put my money through the e.Digital laundry. To have it cleaned. It's got a ring to it. Or is that a whistle?
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"I disagree with everything you say. But I will defend to the death your right to say it." --Voltaire
