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Originally Posted by uproared
It wasn't just $12 million...
The report clearly states: "...we are obligated to pay future contingent earnout payments, payable over a five-year period..."
I'm guessing that will add to the price tag significantly. Furthermore, Lens will still receive wages, etc. for operating the company.
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"As contingencies have not been met as of September 30, 2005, these amounts are not recorded. If future payments are made based on contingencies being met, amounts will be recorded as a combination of additional purchase price and compensation expense."
You can bet those targets/contingincies are high - gotta earn those by growing.
very hard to cash out of this business - Lensman might be the only one who has - other big programs have to stay in biz because there are really no buyers out there that have 12 million dollars in cash to buy anything.