Patriot Scientific

They needn't show a settlement hit on their P&L if they took reserves in previous Qs, which they almost surey would have done. 

Though not in the P&L, the impact of a settlement payment would show up in their Cash Flow statement in the Q report for the period it occures. That doesn't mean they'd have a line item called "settlement". The cost could be under a bundle of things, even R&D (the purchase involves a license for R&D done by someone else). The license would likely be considered Capital (an asset) and as such depreciated over time. Many things to hide behind in the Q report.

However, this Q report would not likely include any cash flow impact for settlement, because this report is for the period that ended before the settlement.