INCORRECT according to the FACTS in the latest 10Q filing. The $580k has been written off by Temple University. It clearly states in the 10Q the deferred amount is $135,000 (not $581,000) until sales exceed $835,000. The 10q filing is as of June 30 2017. The amended Temple University agreement came into force as of July 2017 as per the EVIDENCE below.
In July 2017, the Company and Temple amended the license agreement related to the Company’s AOT viscosity reduction technology. Under this amendment, Temple agreed to defer amounts currently due under the viscosity reduction license in the amount of $135,000, bringing the Company current under the viscosity reduction technology license agreement.
As of June 30, 2017 and December 31, 2016, total unpaid fees due to Temple pursuant to this agreement amounted to $78,000, which are included as part of Accounts Payable – licensing agreement in the accompanying consolidated balance sheets. As of June 30, 2017, the entire $78,000 is deemed past due.
On July 14, 2017, the Company and Temple reached agreement to settle these past due amounts under a payment plan, paying the amount before the end of December 2017.
In addition, Temple University continues to provide laboratory testing and support related to the Company’s commercialization efforts. This continuing work is provided on at a fixed price, on an ad hoc basis depending upon the scope of work. During the six-month period ending June 30, 2017, the Company incurred a total of $3,000 in ad hoc testing with Temple University. No ad hoc testing was performed during the three-month period ending June 30, 2017. Temple ad hoc testing expense is reported as part of Research and development expenses in the accompanying consolidated statements of operations.
On July 13, 2017, the Company and Temple University entered into an amendment to the exclusive license agreement related to the Company’s AOT viscosity reduction technology. The amendment defers those outstanding fees in the amount of $135,000 owed by the Company to Temple University under the license agreement, until such time as the Company either receives sales receipts exceeding $835,000 or sublicenses the agreement. Further, the amendment established interest rates for outstanding fees and terms of payment for an annual license fee between the Company and Temple University.
Additionally, on July 13, 2017, the Company and Temple University entered into a payment agreement related to the sponsored research agreement of March 19, 2012 between the parties, as amended on March 19, 2013. Under the terms of the payment agreement, the Company and Temple University agreed to a payment schedule for outstanding fees in the amount of $78,314, owed by the Company to the Temple under the research agreement. Under the terms of the payment agreement, these fees are payable $20,000 upon the effective date of the Agreement, and the balance payable in six equal monthly installments of $9,719.
