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COMMITMENTS & CONTINGENCIES (Tables)
6 Months Ended
Jun. 30, 2020
COMMITMENTS AND CONTINGENCIES  
Contractual Obligation, Fiscal Year Maturity [Table Text Block]

Future Commitments

Commitment

 

Counter Party

 

Product Relationship

 

Commitment Type

 

2020

 

2021

 

2022

 

2023

 

2024 & After

 

Total

    

Research Agreement

KeyGene

Hemp / Cannabis

Contract fee

$

600

$

1,200

$

1,200

$

1,200

$

295

$

4,495

(1)

License Agreement

NCSU

Tobacco

Annual royalty fee

113

225

225

563

(2), (3)

License Agreement

NCSU

Tobacco

Minimum annual royalty

25

25

50

50

650

800

(3)

License Agreement

NCSU

Tobacco

Minimum annual royalty

50

50

50

50

550

750

(3)

Sublicense Agreement

Anandia Laboratories, Inc.

Hemp / Cannabis

Annual license fee

10

10

10

10

120

160

(4)

Growing Agreement

Various

Various

Contract fee

75

75

(5)

$

873

$

1,510

$

1,535

$

1,310

$

1,615

$

6,843

(1)Exclusive agreement with the Company with respect to the Cannabis Sativa L. plant (the "Field"). The initial term of the agreement is five years with an option for an additional two years. The aggregate cost of the agreement over the initial term is $6,000. The Company will exclusively own all results and all intellectual property relating to the results of the collaboration with KeyGene (the "Results”). The Company will pay royalties in varying amounts to KeyGene relating to the Company's commercialization in the Field of certain Results. The Company has granted KeyGene a license to commercialize the Results outside of the Field and KeyGene will pay royalties in varying amounts to the Company relating to KeyGene's commercialization outside of the Field of the Results.
(2)The license agreement also requires a milestone payment of $150 upon FDA approval or clearance of a product that uses the NCSU licensed technology. The annual royalty fee is credited against running royalties on sales of licensed products.
(3)The Company is also responsible for reimbursing NSCU for actual third-party patent costs incurred, including capitalized patent costs and patent maintenance costs. These costs vary from year to year and the Company has certain rights to direct the activities that result in these costs.
(4)The Company is also responsible for the payment of certain costs, including, capitalized patent costs and patent maintenance costs, a running royalty on future net sales of products made from the sublicensed intellectual property, and a sharing of future sublicensing consideration received from sublicensing to third parties.
(5)Various R&D growing agreements for hemp / cannabis and tobacco.