LICENSE AGREEMENT WITH ENCORE |
12 Months Ended |
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Jun. 30, 2024 | |
License Agreement With Encore | |
LICENSE AGREEMENT WITH ENCORE | NOTE 8 – LICENSE AGREEMENT WITH ENCORE
On May 1, 2024, the Company entered into an exclusive distribution agreement with Encore Sales and Marketing LLC (“Encore”) under which the Company granted Encore exclusive rights to sell and market the Company’s products to the gaming industry (as defined in the agreement) and on a non-exclusive basis to all other industries, through April 2029. In return, the Company will receive $200,000 from the customer, a payment of $150,000 and an additional $50,000 within the first 120 days of the agreement. Per the agreement, the Company will also receive a minimum payment of $60,000 per month in the first year of the agreement, commencing after 120 days, $120,000 per month in the second year and $180,000 per month in the third year. All subsequent years payments will have a minimum of 10% per year growth.
As of June 30, 2024, the Company had received a $150,000 payment from the customer. No other payments have been received by the Company.
The payment received of $150,000 by the Company related to the signing of the agreement, which gave Encore exclusive rights to the gaming industry, the transfer of rights to its technology to Encore, and certain product enhancements as required by Encore. As of June 30, 2024, the Company completed the transfer of its technology to Encore and completed all required product enhancements. The Company recognized the $150,000 payment received as revenue during the year ended June 30, 2024, as it had no further obligation to the customer under the agreement and in no circumstance would the Company be required to refund the $150,000 to the customer.
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