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License Agreement
12 Months Ended
Dec. 31, 2017
Text Block [Abstract]  
License Agreement

Note 16: License Agreement

On November 1, 2017 (“Effective Date”), we entered into an Agreement with Xeikon, which is a division of the Flint Group headquartered in Luxembourg to license the rights to the manufacturing, technology, marketing, and support of the Jetrion business. Pursuant to the Agreement, we provided Xeikon access to the Jetrion customer list and enabled Xeikon to assume the relationship with the third-party outsourcing company that manufactured Jetrion printers for us and resell the printers to our current customer base. Xeikon will purchase UV label ink exclusively from us and resell to both our current customer base as well as new Xeikon inkjet customers. Per the terms of the Agreement, we agreed to cease sales of Jetrion products for four years after the Effective Date. We received cash consideration of $2.0 million during 2017 followed by annual volume-based royalty payments based on Xeikon’s ink purchases from us through October 31, 2021.

We determined the amount of the actual payments received in 2017 related to Jetrion customer list access, Jetrion trade name, and volume-based royalty payments. Access to the customer list is recognized immediately as other income in our Consolidated Statement of Operations. Trade name is recognized ratably over four years as other income in our Consolidated Statements of Operations. Volume-based royalty payments from Xeikon’s ink purchases are recognized as revenue ratably over four years. For the year ended December 31, 2017, we recognized $0.1 and $0.3 million of revenue and other income in our Consolidated Statements of Operations from the Agreement.

 

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