I don't quite see it that way, (ceeker, or others correct me if i am wrong here). R-pac is the distributor of KMAG products, KMAG wholesales their products to r-pac = revenue to KMAG R-pac adds on their mark-up and re-sells product to manufacturers, retailers, etc. = revenue to r-pac. Any royalties paid in reference to the IP KMAG owns, by r-pac, also= revenue to KMAG.