INTELLECTUAL PROPERTY AND COLLABORATIVE AGREEMENTS

9 Months Ended

Sep. 30, 2022

INTELLECTUAL PROPERTY AND COLLABORATIVE AGREEMENTS

INTELLECTUAL PROPERTY AND COLLABORATIVE AGREEMENTS

NOTE 20 – INTELLECTUAL PROPERTY AND COLLABORATIVE AGREEMENTS

                In September 2018, the Company entered into a multi-year licensing agreement (the “Licensing Agreement”) with Canopy Growth Corporation, a company that engages in the production and sale of medical cannabis (“Canopy”). In October 2020, the Company filed a demand to commence arbitration against Canopy for Canopy’s failure to perform under the License Agreement. On April 28, 2021 the Company entered into an agreement resolving the dispute between the parties, pursuant to which the parties released their respective claims and obligations, and Canopy agreed to pay a total of $3.9 million, of which $2.3 million was paid to the Company on May 6, 2021, and the balance of $1.6 million was paid to the Company’s attorneys. The Company recognized a settlement income of $2.4 million during 2021 as a result of this agreement.

During the three months ended September 30, 2022 and 2021, the Company did not recognize any revenue relating to work completed in regard to the transfer of technology fee as discussed in the License Agreement.