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fourtwo

09/15/12 8:47 PM

#30620 RE: DHOLE #30616

Dhole,
Let me try this one more time. Inventors' royalties are a cost of sales and are not netted out of revenue. This is not relevant to the declaration of revenue. It is a sales expense and will be accrued according to the terms of agreemet with inventors. Again the actual date of cash/value transfer is not the determinant of when these are accounted for in the Income Statement.