Replies to post #35676 on Max Sound Corporation (MAXD)

[PleaseTheZzs]

A settlement would be considered one time revenue unless the settlement came with a licensing partnership where Google/Youtube utilizes MAXD tech in their product(s). So one time money would just strengthen the balance sheet and an on-going licensing would strengthen the income statement, which is way way more beneficial to the company and the share price. I would say a flat settlement would bump the share price to like a penny but a licensing deal would rocket the stock to the moon. It would justify the assumption of similar licensing deals across many other similar products with other companies.

[grantastic]

It's too hard a question to generalize.

A paid settlement is cash in the bank. Pretty easy to divide by # of shares and see how much that instantly adds value to the company.

Things get tricky when you have to analyze stuff like:

- Does this settlement then create precedent for other settlements with other companies? Or is it a one-time payout?

- Does the settlement validate some kind of technology or business practice which was, until then, discounted by the market?

- Has the company been handicapped by lack of capital but can now fund its expansion plans?

- If there is some kind of ongoing revenue derived from winning a settlement, how long does it last? i.e., a patent becomes public domain after a number of years.