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COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 31, 2021
COMMITMENTS AND CONTINGENCIES  
Schedule of future commitments

Future Commitments

Commitment

 

Counter Party

 

Product Relationship

 

Commitment Type

 

2023

 

2024

 

2025

 

2026

2027 & After

Total

    

Research Agreement

KeyGene

Hemp / Cannabis

Contract fee

$

2,524

$

2,058

$

1,589

$

1,302

$

328

$

7,801

(1)

License Agreement

NCSU

Tobacco

Minimum annual royalty

325

100

100

100

1,000

1,625

(2)

Research Agreement

NCSU

Tobacco

Contract fee

99

99

(3)

Sublicense Agreement

Anandia Laboratories, Inc.

Hemp / Cannabis

Annual license fee

10

10

10

100

130

(4)

Research Agreement

Cannametrix

Hemp / Cannabis

Contract fee

667

666

1,333

(5)

License Agreement

Cannametrix

Hemp / Cannabis

Minimum annual royalty

75

100

1,900

2,075

(6)

Growing Agreements

Various

Tobacco

Contract fee

242

242

(7)

Consulting Agreements

Various

Various

Contract fee

1,195

746

1,941

(8)

$

5,062

$

3,580

$

1,774

$

1,602

$

3,228

$

15,246

(1)Exclusive agreement with the Company in the field of the Cannabis Sativa L. plant. The initial term of the agreement was five years with an option for an additional two years. On April 30, 2021, the Company and KeyGene entered into a First Amended and Restated Framework Collaborative Research Agreement which extended the agreement term, from first-quarter 2024 to first-quarter 2027, and preserves the Company’s option for an additional 2-year extension, now through first quarter of 2029. On March 30, 2022, the Company and KeyGene entered into a new Framework Collaborative Research Agreement for a term of three years at an aggregate cost of $1,830 in the field related to the hops plant.

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 stated fields of each agreement. The Company has also granted KeyGene a license to commercialize the Results outside of each field and KeyGene will pay royalties in varying amounts to the Company relating to KeyGene's commercialization of the Results outside of each field.

(2)The minimum annual royalty fee is credited against running royalties on sales of licensed products. The Company is also responsible for reimbursing NCSU 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.
(3)On August 19, 2022, the Company entered into a one-year Sponsored Project Agreement with NCSU for continued research of tobacco alkaloid formation.
(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 in all countries except for Canada. Anandia retains all patent rights, and is responsible for all patent maintenance, in Canada.
(5)On March 11, 2022, the Company expanded its research agreement with Cannametrix for hemp/cannabis product development, formulation, and validation for a three-year period at an aggregate cost of $2,000.
(6)The minimum annual royalty fee is credited against running royalties from the sales of goods or services based on Project IP and/or Background IP.
(7)Various R&D growing agreements for hemp / cannabis and tobacco.
(8)General corporate consulting agreements.