Related party transactions have rules. WLAN will not be able to just report losses. The amounts that WiFidelity charges WLAN to sell the boxes has to be at fair market value. If they sell the boxes to wifidelity at cost they would have no profit motive. I am not positive but I suspect the sec has some laws protecting shareholders from that type of structuring of transaction. The IRS would close WLAN down in a hot minute. The bottom line is the transaction has to be an "arms length transaction".
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