StreamTrack, a digital media technology services company operating within the internet radio and streaming media sectors, today announced execution of a settlement agreement with Lenco Mobile, Inc. ("Lenco"), the former owner of the company's proprietary Radioloyalty™ music streaming and internet radio monetization platform. The following is a summary of the key attributes of the transaction.
1.StreamTrack's liability to Lenco for any earn-out consideration associated with the assets the Company purchased from Lenco in December 2011 is cancelled in full. StreamTrack will write off the current full value of the contingent royalty payable of approximately $820,000.
2. StreamTrack will waive its claim to collect on approximately $130,000 in accounts receivable owed from Lenco, of which an $80,000 reserve was previously recorded against.
3. StreamTrack will transfer to Lenco certain assets included in the December 2011 transaction that have remained dormant and not utilized by the Company since December 2011. The assets were previously recorded on StreamTrack's books with no value.
Michael Hill, Chief Executive Officer of StreamTrack, commented, "The settlement with Lenco removes a significant liability from our balance sheet that could have ultimately totaled $2,500,000. The assets we relinquished have little value to our core business but have particular value to Lenco. We are pleased to move forward with our business without the overhang of this large potential royalty liability."
For more information, visit StreamTrack.com
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