Annual report pursuant to Section 13 and 15(d)

Revenues

v3.19.3
Revenues
 12 Months Ended
Aug. 31, 2019
Revenues [Abstract]  
Revenues
15. Revenues

 

 

 

August 31

2019

$

 

 

August 31

2018

$

 

Product sales

 

 

 24,282

 

 

 

 16,967

 

Licensing revenue (Note 11)

 

 

 198,000

 

 

 

 415,183

 

Freight revenue

 

 

 328

 

 

 

 1,137

 

 

 

 

 222,610

 

 

 

 433,287

 

 

The Company recognized licensing revenue on a pro-rated basis over the term of the Licensing Agreement and additional licensing fees as they were earned. The Company has determined that the support services form an insignificant portion of the licensing contract as they are substantially completed prior to delivery of the DehydraTECH™ technology (the Technology) and that delivery of the license is complete when the Technology is transferred to the licensee. Additional licensing fees and royalties are recognized as they are earned. During the year ended August 31, 2019, the Company recognized $Nil of deferred revenue (Note 12) and $198,000 of additional Intellectual Property Licensing fees.

 

 
There was a slight increase in product sales in the current year compared to the previous years as the Company was able to solve some payment processing issues later in the fiscal year. The additional Licensing fees consist of IP licensing fees for transfer of the Technology with the signing of definitive agreements for the DehydraTECH technology. The additional Licensing fees include payments due upon transfer of the Technology and installment payments that are receivable within 12 months (Note 7).