Latest inquiry I sent investor relations today:
I was reading the Q2 Quarterly report that was released today and about the renegotiated "Exclusive Licensing Agreement" in which you guys paid $360,000 to license GreenBox infrastructure for the first year. I have a few questions pertaining to this:
1. Will there be any increases in licensing costs for the following 4 years of exclusivity after June 12th 2019?
2. Since this renegotiated deal, can you speak any further than the one sentence provided in the report on monetization of MTrac? Since you now pay an annual licensing fee, do you receive 100% of revenue generated from transactions fees on the platform? I know GreenBox receives the 3% fee on deposits initially, so does this get kicked back to MTrac? If so, do you receive these funds quickly, possibly via your own MTrac merchant wallet?
3. How will future licensing fees be paid for? Will GreenBox claim a portion or all of the revenue generated from transaction fees on MTrac's platform until the license fee is paid for?
4. I am assuming that with this new deal, MTrac revenue will depend solely on transactions. Can you provide any clarity on the GreenBox hardware installed at merchant locations? If there are any leasing fees associated with the MTrac Kiosks or POS systems, does MTrac receive a direct benefit from those fees separate from transactions conducted on them?
I look forward to any details you can provide.
As always, thank you!
Waiting to hear back...
