From last year's 10k: "During the years ended December 31, 2012 and 2011, the Company executed various license agreements and collected an aggregate of $1,222,500 in license fees for six centers which had not yet commenced operations as of June 30, 2013. Consequently, recognition of such revenue had been deferred pending commencement of operations. The Company was unable to perform its obligations in regards to the licensing agreements and, accordingly, the agreements were cancelled. The Company has classified the amounts to be returned to the former licensees as Licensee Fees Payable on the consolidated balance sheet."
However I don't believe any of that applies if the licensee continues to steal the intellicell product and make money from it for the duration. If its canceled its canceled. Strangely in this case that outlet not only continued to use the process but marketed it aggressively and grew as a result. Guess it will get worked out in America.
And there are six (6) licensees, surfy. Since you know SO MUCH about them, why don't you tell us all why ALL the licenses have been cancelled, not just the Australian one, which you want to isolate and claim theft of 'product'?
Yes, its going to get worked out alright - in the NY Southern District Court! SVFC was not able to "perform its obligations" and the "amounts to be returned" never were. If this was stolen, why hasn't Dr. LookGood sued or informed the authorities of theft? You cant steal something that you bought, unless the money was returned - and it wasn't. And since this item is still on the Company's balance sheet, its still a valid liability. Otherwise, its accounting fraud on Dr. LookGood's part - he's still the CFO.