Thanks otc I guess there won't be a write off. But how will the company handle the 5.5 million shares rather than the $3 million due on May 1? The company will write a check on May 1. How are the shares declared in the 10Q?

As a result, d uring the six months ended November 30, 2006, the Company recorded $6,300,000 of settlement and license expense relating to the mediation agreement with Fish. The amount consists of $3,000,000 to be paid in cash and 5,500,000 million shares of stock at an average price of $0.60 per share. In addition to those terms, the mediation terms further provide the Company will pay Fish the equivalent of 4% of 50% of the next $100 million of gross license fees as they are collected by Phoenix Digital and as distributions are made to Patriot , after excluding the first $20 million collected by P hoenix Digital after December 1, 2 0 06. Patriot's commitment to make payments to Fish related to such future license revenues will not exceed $2 million.