From what I understand, there are four entities at play here:
- SQID, - Shareholder of SQID, - FGF; and - FGA
FGF has purchased shares from a shareholder of SQID
FGF have not invested money into SQID
If SQID performs, FGF will pay more for the shares based on the performance milestones
FGA is advising SQID at the same time. SQID will be required to pay FGA with the condition that SQID hits the performance milestones outlined in the announcement.
The bottom line... If SQID reaches all its milestones, FGA will make $550,000 upfront fee + 2 x $550,000 = $1.65m revenue.