McPatrick – the terms of the agreement are that DOMK would receive 50% of the Net Commissions, therefore, cut your estimated revenues in half. Also, please note that your statement that “DoMark has the NORTH AMERICAN rights to monitizer101” is not a sure thing. For the 2nd quarterly report in a row, the Company continues to be delinquent in their licensing payments. It is also unknown if the Company will generate the $500k in Net Commissions by Jan 31, 2015 to retain their rights (if any exist).
During the three months ended February 28, 2014, the Company executed a Licensing Agreement with Wazzamba SA (the “Licensor”). The agreement provides the Company an exclusive license to use certain technology (which permits third-party subscribers to integrate a fully equipped online shop into their websites) in Canada and the United States for an initial term ending July 31, 2015. The agreement provides for the Company to pay the Licensor “Flat Fee” compensation of $ 300,000 in 3 installments of $100,000 each (first installment payable within 5 days of the signing of the agreement, second installment payable on July 1, 2014, and third installment payable on February 1, 2015) plus “Revenue Share” compensation equal to 50% of Net Commissions generated by the Company payable monthly. In the event that the Company does not generate $500,000 in Net Commissions by January 31, 2015, the Licensor has the right to cancel the agreement with one month notice (in which case the third $100,000 installment will no longer be due). With respect to an Extended License Term after July 31, 2015, the agreement provides the Company a right of first refusal to match any offer received by the Licensor from a third party.
On March 27, 2014, the Company paid $25,000 of the first $100,000 “Flat Fee” installment due the Licensor under the agreement. The other $75,000 due is presently past due. [in addition to the July 1 past due payment]
