quote - "If there has been a change from the chinese payment method (onelumpsum) then isn't that a material item that must be disclosed?"

Actually, something of the opposite might have occurred, meaning perhaps the numbers were so large that had they received a lump sum maybe we would have had to file a K indicating such, which would have blown the cover of the NDA. By repackaging the settlement into royalties, there is no extraordinary/material event (to PTSC's revenues) and thus the deal can fly under the radar, so to speak.

That may be a real reach, but I still am in the royalty camp at this point. We simply did not turn on a dime and just decide to give licenses away after achieving momentum. That does not register, nor jive with the 'average' license fees plugged to date, IMO.