If the settlement was "confidential," how is it reported (and where/when)?
Is the "Gain from settlement" in the 12/31/16 financials "part" of the settlement or the entire cash settlement? If "part", where is the rest reported and how is it booked?
Is the "Gain on patent licenses" part of the "settlement? If yes, is this CASH or VALUE?
From the Financial Reports:
"The company’s products were artificially denied a market for almost 3 years, but on the other hand, the company did receive rare settlement monies and other compensation from Lifescan in a suit where Lifescan was the Plaintiff. The amount of the settlement monies received by the company was confidential, as is often the case when Plaintiffs dismiss or lose a complex case, but confidentiality aside, the entire settlement was structured as a license agreement whereby Lifescan, Inc. paid a sum of cash to the company (a rarity for a Plaintiff) and granted licenses to the company for its test strip patents in return for accommodations regarding the anti-trust and false advertising claims made by the company. The licenses to the Lifescan Inc. patents are of great value to the company in the overall settlement, as will be seen later in 2017."
FROM FINANCIALS as of 12/31/16:
Other income (expense):
Financing costs (1,020,817) (16,965)
Interest expense, net (294,261) (281,319)
Loss on write-down of obsolete inventory (242,736) –
Gain on lawsuit settlement 146,863 –
Gain on patent licenses 1,000,000 –
Total other income (expense) (410,951) (298,284)
Is the "Gain from settlement" in the 12/31/16 financials "part" of the settlement or the entire cash settlement? If "part", where is the rest reported and how is it booked?
Is the "Gain on patent licenses" part of the "settlement? If yes, is this CASH or VALUE?
From the Financial Reports:
"The company’s products were artificially denied a market for almost 3 years, but on the other hand, the company did receive rare settlement monies and other compensation from Lifescan in a suit where Lifescan was the Plaintiff. The amount of the settlement monies received by the company was confidential, as is often the case when Plaintiffs dismiss or lose a complex case, but confidentiality aside, the entire settlement was structured as a license agreement whereby Lifescan, Inc. paid a sum of cash to the company (a rarity for a Plaintiff) and granted licenses to the company for its test strip patents in return for accommodations regarding the anti-trust and false advertising claims made by the company. The licenses to the Lifescan Inc. patents are of great value to the company in the overall settlement, as will be seen later in 2017."
FROM FINANCIALS as of 12/31/16:
Other income (expense):
Financing costs (1,020,817) (16,965)
Interest expense, net (294,261) (281,319)
Loss on write-down of obsolete inventory (242,736) –
Gain on lawsuit settlement 146,863 –
Gain on patent licenses 1,000,000 –
Total other income (expense) (410,951) (298,284)
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