Replies to post #28293 on American Green Inc (ERBB)

[flydoc]

So, Mario, just to be perfectly clear, you are saying:

1. The revenues reported by MMXT really are only 40% of the revenues for the combined companies (plus some nebulous "extra" money -- 30-50 K -- earned by only SunnComm, and, of course, NOT reported).

2. We DON'T get 4 cents per CD, but rather just 3.5 cents.

3. We really only had 7 M CDs in Q2, NOT 10 M as had been speculated....

Correct?

[docgfd]

"Units pressed in quarter: appx. 7 million @ appx. .035 avg."

Appx. 7 million? What's 'Appx' mean? Are you rounding up from 6.7 million?

And .035 avg? Why is this an average, as opposed to a fixed price?

[neilbolton]

Mario,

scmi has solo mostly pre-mmxt contracts that bring additional revenues.

So you are saying this statement in the quarterly filing is not true?

The Agreement provides the Company with 40% of the revenues derived from all existing licensing agreements held by SunnComm and future revenue generating agreements for the technology.

There is no room for "solo" in that statement just as the use of the word "exclusive" in the actual agreement also precludes SunnComm from earning revenue from the sale of SunnComm products that are not shared with MediaMax Tech.

[neilbolton]

Mario #2

approximate total revenues from mmxt contracts: mmxt=85k,scmi=130k, scmi additional revenue= 30k to 50k(scmi, non-reporting). Units pressed in quarter: appx. 7 million @ appx. .035 avg.

It is interesting that you didn't use year to date figures, which we know would show revenue at 2.5 cents per CD (assuming MediaMax reports 40% of the revenue).

But lets continue with your assumption. If 7M were pressed 2nd quarter, then 3M were pressed 1st quarter. MediaMax Tech revenue for 1st quarter was $13,786, which assuming represents just 40% of combined revenue means combined revenue was $34,465. That would mean the average take for 1st quarter was just 1.1 cent per CD.

The 4 cent figure looks very much pie in the sky.

Going back to the $50K additional solo revenue that you claim SunnComm earns. Although I can accept that they may earn additional revenue from non-product licensing (consultancy, management fees etc.), there is no room in the agreement for SunnComm to earn solo revenue for licensing fees.

Read the words of the agreement carefully. Exclusive means exclusive. Furthermore, as I posted in my last post, it is also quite clear from this statement in the quarterly filing....

The Agreement provides the Company with 40% of the revenues derived from all existing licensing agreements held by SunnComm and future revenue generating agreements for the technology.

Any additional revenue SunnComm may have is not from licensing agreements, so do not get added to revenue when estimating revenue per CD.

The best we can come up with for this year (assuming 40% is what is reported) is 2.5 cents per CD.