Licensing Agreements

9 Months Ended

Sep. 30, 2024

Licensing Agreements

Licensing Agreements

5. Licensing Agreements

On January 3, 2012, we entered into a perpetual license agreement (the “Perpetual License”) with Mastermind Marketing, Inc. (the “Licensor”), which provides for licenses of trademarks, internet domains, and certain intellectual property as defined in the Perpetual License. The Licensor is one of our members and its chief executive officer is also our chief executive officer. The Perpetual License, which may be terminated at any time by either party, is effective January 3, 2012 and provides for aggregate cash payments of $2,100,000 over the calendar years from 2019 through 2039 with no further payments required after December 31, 2039. The Company has recorded amortized expenses related to the license of $27,000 and $81,000 for the three and nine months ended September 30, 2024, respectively, and $27,000 and $81,000 for the three and nine months ended September 30, 2023, respectively.

In consideration for the Perpetual License, we agreed to pay the following fees through calendar year 2039:

Fiscal Years Ending December 31,	Amount
2024	$	60,000
2025		60,000
2026		120,000
2027		120,000
2028		120,000
Thereafter		1,320,000
	$	1,800,000