Thermo Breakdown, Part II

On March 31st, 2005, REFR licensee Thermoview filed an amended 10-Q (as well as a notification that their 2004 10-K would be late, never a promising sign). Among the disclosures in the amendment were changes to the company's licensing agreement with REFR, and specifically their schedule of payments, which they say were put into effect on December 31st, 2003. These changes are not presently reflected in any filing by REFR. Their most recent 10-K continues to reference the original 2000 agreement as the effective version.

The amendments substitute a reduced payment in 2003, for additional, larger payments in 2005 and 2006, although, with net tangible assets of around negative $20 million, the question arises as to whether any of this payment schedule will survive long, what with the prospect of a Thermoview bankruptcy looming ever larger.

Nevertheless, the discrepancy between the two companies' stories is disturbing. How can it be that troubled, filing-delayed Thermoview can keep track of changes to its agreement with REFR, while REFR itself, cannot?