Note 13 - Licensing Agreement

9 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Licensing Agreement [Text Block]

NOTE

1

3

–

LICENSING AGREEMENT

On

February 20, 2018,

the Company entered into an exclusive perpetual technology license agreement with an arms-length vendor. In exchange for perpetual access to the Company’s technological assets, the Company received:

(i) Upfront fee of $1,000,0000 (received) within 10 business days of the agreement;

(ii) Royalties as follows:

(a) 10% of net sales effective years one to three;

(b) 7.5% of net sales effective years 4 – 7; and

(c) 5% of net sales effective years 8 – 10.

The Company recognized the non-refundable license fee within revenues and recognized

$nil

in royalties during the

nine

months ended Marcvh

31,

2018.