RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Created an "instablog" at seeking alphaThanks Ku and boss,
Here's the new writeup for those interested (old link was dead):
https://seekingalpha.com/instablog/47320354-pipsqueak3/4865708-intermap-vertex-aligned-convert-royalty-cost
Boss, I'll reply to your q's when I get back in
boss_waz wrote: Thanks for your efforts on this.
I am not an accountant so I need clarificartion:
Why %25 third party expense in your calc?
Could it not be argued that the Cost of Sales (the cost to produce the merchandise sold) (COGS) includes the $150m development cost (net revenue)?
So for the first SDI $175m - $150m * %17.5 net revenue?
Its a small number.
Perhaps your .25 is a GAAP average for net revenue calcs, i dont know, but are there other ways to increase that .25 such as increasing third party through outsourcing?
Also, does the royalty apply to the 35m 9 year maintenance revenue...and if so how does the net revenue calc change for services?
https://webcache.googleusercontent.com/search?q=cache:https://seekingalpha.com/instablog/47320354-pipsqueak3/4865585-intermap-vertex-aligned-convert-royalty-cost