No donk, we do not.
In fact, the subsequent even appears to have been written in a rush. I was an auditor for Pricewaterhouse and that subsequent event explanation is pathetic as it tells us NOTHING
Also, I understand where you are going with the IBCL stock. Who gives a hoot if IBCL owns a couple of percentage points worth of HNWS stock when it's better to own the whole enchilada [or is it in this case].
At least if we account for our investment in HNWS under the equity method, we can take our percentage of ownership and apply it to the income of HNWS. Accordingly, if HNWS brings in 1,000,000 and IBCL owns 35%, IBCL gets to take 35% of the income or 350K for its P&L.
So if this assertion is correct [and I know IBCL accounts for its investment in HNWS under the equity method] then IBCL can look forward to the following:
1. Royalties from Nova's sales of IBCL's products from the exclusive distribution agreement
2. Shares of HNWS/Nova
3. 500K
4. Percentage of income from HNWS revenue in line with our percentage of ownership thereof [we may have to take a percentage of costs also but hopefully they are less than the revenue - precise rules are fuzzy as I haven't had a reason to know all of the details in this accounting entry.
5. NO COST OF SALES [unless IBCL writes its own sales K]
6. MINIMAL OVERHEAD
7. MINIMAL OFFICE RENT [assuming Nova & HNWS employees work in IBCL's office space]
One last observation: GG was making fun of wantobe for loading up on HNWS... at least that is how his posts came across IMHO. You can go read them. They started on the 26th
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