SiNtx Technologies Inc (SINT)

[boston745]

Ive always known that the 2.5m payment paid Q2 2017 is the same 2.5m that was loaned to Sintx Q3 2017 via Sonnys investment fund. However i continue to screw up the details.

For a long time i treated it like it was milestone payment, but Certain R&D payments are upfront payments for IP. My last post i said the payment was to acquire IP already developed. However usually upfront payments are for access to IP to be developed.

Certain R&D agreements relate to agreements with upfront payments to obtain intellectual property to be used in R&D projects

Whatever the IP Zimmer Biomet is paying for here, its related to the successful results of the testing of Sintx femoral head and its E1 liner. As the payment is upfront, it has to be for IP that is being created. Upfront payments usually lower the royalty payment later. As Sintx & Sonny were not on the receiving end of this, the party receiving the funds would likely be one of the Universities involved as i said in my previous post. The most likely would be University of Missouri/Missouri S&T as Dr Bal has a Si3n4 program there. Logically this make the most sense as whichever party used Dr. Bals investment fund to loan to Sintx has to have a high degree of trust for Dr Bal, ie someones very familiar with his work. Dr Bal has a Si3n4 program at Missouri S&T. The loan terms were very favorable for the party that loan the funds. 10% interest and 660k warrant. Funds used in this loan worked to secure Sintx IP until CTL took over that role when it acquired spinal IP.

I have a materials science research program at the Missouri Science & Technology University in Rolla, MO. My colleague, Prof. Rahaman and I have worked with bioactive ceramic technology, training and preparing many graduate PhD students from around the world. With our colleagues from Kyoto, Japan, we are developing super-tough silicon nitride ceramics for hip and knee replacement. Research, grants, publications, and patent filings are listed in my curriculum vitae, located here

Without knowing who was on the receiving end of the 2.5m payment from Zimmer Biomet, based on the timing Sintx strategic partner Zimmer paid the funds for the development of a hip implant using Sintx MC2 femoral head and its liner. The upfront payment would be for that IP related to that. The most likely receipents of said funds being University of Missouri as i already indicated or Dr. Pezzottis program at Kyoto Institute of Technology. Both programs are materials programs but Dr Bal has experience developing hip/knee implants/procedures for Zimmer and other companies.

Dr. Bal receives royalties from Zimmer, Inc.

https://www.medscape.com/viewarticle/500444

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The second half of the quote on Certain R&D payments says the following:

that have no alternative future use in other projects.

This, as it turns out, only means the license for the IP is limited in scope.

Company A cannot use the technology for any other project or otherwise assign or transfer the technology. Company A has not yet concluded if economic benefits are likely to flow from the compound or if relevant regulatory approval will be granted.

The agreement stipulates that Company A will be permitted to use Company B’s technology in its own facilities for a period of three years. Company A will make a non-refundable payment of $3 million to Company B for access to the technology.

Company A should expense the $3 million when incurred (normally when paid) as research and development costs since the technology has no alternative future uses.

Thats what Zimmer Biomet did, expensed the payment when it incurred. As the payment was upfront, it implies that Zimmer Biomet commissioned the receiving entity to conduct research.

Company A pays the CRO a non-refundable, upfront payment of $3 million in order to carry out the research under the agreement. The CRO will have to present a quarterly report to Company A with the results of its research. Company A has full rights to the research performed,

https://www.pwc.com/us/en/industries/health-industries/library/gaap-issues-solutions-pharma/research-development.html

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A basic roadmap laid out of Zimmer's intentions for Sintx back in 2011. This quote predates Sintx vast IP portfolio expansion. Any markets Zimmer Biomet does not currently participate in, that Sintx does, represents potential markets Zimmer Biomet can utilize Sintx to bolster its revenue through licensing as well as diversify those revenue sources.

AnonymousMay 24, 2011 at 3:42 PM
Zimmer is looking at purchasing Amedica flat out for their techology to bolster sales in spine through licensing and to purchase the next generation of hip and knee implants. You heard it here on TSB.

https://web.archive.org/web/20240408163612/https://spineblogger.blogspot.com/2011/05/whos-next.html?m=1


Sintx - Morgan Ceramics partnership & NP Aerospace Connections
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174166246
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174166439

Sintx - Zimmer Connection
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174053353

Sintx - Zimmer connection purposefully not disclosed/removed from 2013 IPO paperwork?
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174144294

Sintx - Biomet R&D
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174053136

Dr. Pezzotti member of Sintx scientific board and his research for Biomet
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174052660

Zimmer Biomet Hires Si3N4 Coatings Expert for its anti-infective dvision - December 2018
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174115529

Zimmer Biomet pays 2.5m certain R&D payment Q2 2017, Dr Bal's investment company loans $2.5m to Sintx.Q3, 2017
https://investorshub.advfn.com/boards/read_msg.aspx?message_id=174152867

Mr Bond, they have a saying in Chicago: 'Once is happenstance. Twice is coincidence. The third time it's enemy action'.

One is an incident, two is a coincidence, three's a pattern, and four is enough for a warrant