I hope I am wrong, however here is what I am looking at

Total settlement 1,600,000

DM Expenses 198,000

Net 1,402,000

60% to edig 841,000

40% to DM 561,000**

** Amount shown on the Income statement

Gross profit from settlement 1,039,000

Important info from the 10Q

Page 22

Patent license costs of revenues include contingency legal and other direct costs associated with patent licensing.

Page 21

The Company has only recently commenced receiving patent license revenue. The Company recognizes revenue from patent license agreements when (i) the patent license agreement is executed, (ii) the amounts due are fixed, determinable, and billable, (iii) the customer has been provided rights to the licensed technology and (iv) collection of the resulting receivable, if any, is probable. At the time the Company enters into a contract and provides the customer with the licensed technology the Company has performed all of its obligations under contract, the rights to the Company’s technology have been transferred and no significant performance obligations remain. License revenue to date consists of one-time fully paid-up licenses requiring no future performance. The Company will value nonexclusive cross licenses received only if directly used in operations

Page 19

In September 2008 we recorded initial patent license revenue from a settlement with one of the defendants. We expect additional patent license revenues in future periods.

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Page 18

During the quarter ended September 30, 2008 the Company provided a tax provision of $264,000 representing foreign taxes for which a credit (a deferred tax asset) may be allowable against future United States taxes subject to certain limitations

Page 17

Duane Morris also has agreed to advance certain costs and expenses including travel expenses, court costs and expert fees. The Company has agreed to pay Duane Morris a fee equal to 40% of any license or litigation recovery related to Patent Enforcement Matters, after recovery of expenses, and 50% of recovery if appeal is necessary

Page 15

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