Bumpy, Did You Get a Bump on the Head?
Braeburn's only immediate income will come from the sales of Probuphine.
The gross receipts will be the total deposits into their bank account.
Titan will collect a royalty on the total receipts.
Braeburn's books will be examined by the IRS and are subject to review by Titan.
Your theory is that Braeburn will set up a concession stand and sell lemonade together with Probuphine rods for cash and that they won't report the cash sales, thereby denying Titan a royalty on those sales?
What led you to the conclusion that the Braeburn execs intend to commit fraud?