Technology Licenses, Net

9 Months Ended

Sep. 30, 2022

Technology Licenses, Net

Technology Licenses, Net

Note 6 – Technology Licenses, Net

	September 30,		December 31,
	2022		2021
Licenses	$	2,443,356	$	1,038,606
Additions		15,000,000		1,404,750
Less: Accumulated Amortization		(1,786,023)		(1,053,420)
Licenses, Net	$	15,657,333	$	1,389,936

As noted above in Note 5, on May 12, 2022, the Company signed a series of agreements with Atomistic SAS (the “Atomistic Agreements”), which provided for an exclusive license of key mLED technology and for the custom design of a backplane chip for cash commitments totaling $30 million along with equity issuance commitments to be made by the Company relating exclusively to the achievement of performance milestones by Atomistic (See Note 10 – Capital Stock for further details). $15 million of these agreements are for the exclusive technology license for the existing know-how and existing developed technologies related to next generation mLEDs and micro-displays.

As of the effective date of the Atomistic Agreements, the Company recorded an intangible technology license asset of $15,000,000 and an accrued liability (short-term and long-term) defined as a Licensing Fees Commitment, of $15,000,000. This intangible asset is to be amortized over a ten-year period, which began on May 12, 2022. During the three months and nine months ended September 30, 2022, the Company paid $1,500,000 and $4,500,000, respectively,

towards this commitment and recorded a total of $375,000 and $562,500, in the three and nine months ended Spetember 30, 2022, respectively, in amortization relating to this intangible asset. The remaining balance of $9,000,000 associated with this contractual obligation is to be paid over the next 15 months.