Ha, guess that’s what I get for not reading the EULA. I see it does mention operating off Gross Revenue, but doesn’t mention returns. In theory could there be a situation where someone sells $5,000 worth of copies, all of which are returned, and still owe royalties without actually making any money? That would suck.
That was the info I was looking for though, thank you. Got my first royalty form filled out 
Rob