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Note 18. Subsequent events
3 Months Ended
May 04, 2013
Subsequent Events [Text Block]

18.           Subsequent events


Non-exclusive license agreement


On May 16, 2013, we entered into a Non-Exclusive License Agreement with Issuer H, as further described in Note 6, under which we agreed to apply Issuer H’s loan balance of $2.5 million plus accrued interest to offset the initial license fees under this license agreement for certain technologies. Upon execution of the license agreement, we paid Issuer H $1.7 million in the form of forgiveness of debt on Issuer H’s outstanding loan balance. Upon completion of certain deliverables by Issuer H related to the licensed technology, we will forgive the remaining outstanding debt (principal and accrued interest). We also agreed to pay a royalty to Issuer H based on our future net revenue from the sale of products incorporating the licensed technology.


Filing for bankruptcy of our wholly-owned Canadian entity


As further described in Note 13, on May 30, 2013 (the “Petition Date”), our wholly-owned subsidiary in Canada filed with the Canadian Bankruptcy Court voluntary petition for relief under the Canadian Bankruptcy Code.


The decrease in expense was primarily due to development and design cost reductions of $1.5 million and compensation and benefits reductions of $1.0 million, partially offset by higher IT and facility costs of $0.7 million and higher depreciation and amortization of $0.4 million.