Subsequent Event

9 Months Ended

Sep. 30, 2019

Subsequent Events

Subsequent Events

12.          Subsequent Events

On October 24, 2019, a licensee for Avia exercised a purchase option in their existing license agreement to acquire ownership of the Avia trademark registered in China for $12.3 million, effective as of January 15, 2020.  The $12.3 million is payable in installments over a period of three years as follows: $3.3 million on June 30, 2020, $5.0 million on June 30, 2021 and $4.0 million on June 30, 2022.  In the event the licensee fails to pay the purchase price in full the trademark reverts to the Company.  The exercising of the purchase option will not have a material impact on the Company’s consolidated financial statements as the proceeds from the sale will be applied against the cost basis of the intangible asset on the Company’s consolidated balance sheet in the fourth quarter of 2019.