I do not want to sound pessimistic, but facts, even regarding a growth company, speak for themselves. What I'm worried about is the fact that 2.5M was received for 3 B business opportunity, and no further details regarding the arrangement or any hint of royalties has surfaced. IMHO any royalty arrangement is something a growth company would disclose to its shareholders loudly and proudly. But the fact is, nothing of a sort have we heard.
Therefore:
1) according the SEC filings, Boeing paid 2.5 M for all the IP regarding MBAND. IMHO this means, and until we have not seen any royalty arrangement, that PSID shall not receive any income from the production and the sale of the MBAND units. The agreement provides Boeing the exclusive license to manufacture and sell MBAND for BioWatch Gen 3 opportunity.
2) under the teaming Agreement, PSID will retain exclusive rights to serve as the reagent and assay supplier of the MBAND systems to Boeing. Nice, BUT...
3) pursuant to the Security Agreement, PSID has granted Boeing a security interest in all of the licensed product under the License Agreement, to secure PSID’s performance under the License Agreement.
This means that PSID, without any income (royalties) from the sale of MBAND (in US), and probably w/out any other income, MUST be able to perform under Boeing agreement. If not, security interest arrangement shall (and more often than not), by the end of the day, make sure Boeing gets full control over the reagent and assay supply business as well.
AND ALL OF THAT FOR MERE 2.5 M. Not bad for Boeing, not so good for PSID stockholders.
To be honest, I do hope I am mistaken, and there is a lucrative royalty arrangement in place for PSID, because I want them to succeed. BIG TIME.
All of the above is my opinion ONLY.
