"NanoViricides as well as our affiliates have added significant strength in our staffing, with the R&D staff more than doubling to over 20 persons this year."
"Well we knew Theracour had made some new hires."
I think this may be some pretty shaky language. If indeed it is Theracour they are referring to when they use the term "affiliates" in that statement it might be a deceptive use of the term.
Under 17 CFR Part 230 - GENERAL RULES AND REGULATIONS, SECURITIES ACT OF 1933 the term "affiliate" has a very specific meaning:
Affiliate.
An affiliate of, or person affiliated with, a specified person, is a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.
That doesn't describe the NNVC/Theracour relationship at all, which is a relationship that is clearly characterized as licensee/licensor.
To suggest that an entity that NNVC has some control over has "added significant strength in our staffing" would be deceptive if that entity is Theracour given that the affiliate relationship isn't between the two companies, but rather as a result of a third party (Diwan) having an affiliate relationship with those two companies.
It could obviously be said that the two companies are affiliated, but I don't think it's proper to put Theracour under the umbrella of the phrase "our affiliates" when NanoViricides has no control relationship with them. As the language is used it suggests that the staffing increase occurred at the authority of NNVC when it did not. This misuse of the phrase is highlighted by the terms of the license that defines the relationship, wherein Theracour determines its own staffing and actually profits at the expense of NNVC from any additions to it.
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