hi Longman.
They talk up front as no sales need to occur. The old way would be, store orders stock (Sale occurs) and goods leave warehouse.
Now PG orders stock to be manufactured. It is made and sent. By sending to pg royalty is triggered.
PG then fills orders and ships out. It then will work out the difference and reduce the following periods royalty.
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Ann: Term Sheet Executed for First Integrated Product, page-53
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