RE:RE:RE:RE:RE:PYR CEO Peter Pascali Interview - 10% RoyaltyNapoleon001 wrote: Kennyboy may have been too quick to hit send after reading your post again. Bottom line is HPQ must clear at least $1M in earnings (e.g after all expenses such as labor, cost of goods sold, taxes, administrative salaries, general expenses etc. etc.) with the example provided just to break even.
kenneyboy wrote: $10m less $1m royalty expense = $9m gross profit less expenses = net profit. Yes or No? All IMHO.
Cheers and gooooooooooooo.......................HPQ
The royalty payment of 10 percent appears as though it may have been negotiated with the main idea of a buyout exit strategy. If this is the case and HPQ tech is disruptive and has a major capex investment savings in the hundreds of millions, than ten percent is a drop in the bucket but still a substantial amount of money. If that makes sense.
SN