The Company recognized licensing revenue on a pro-rated basis over the term of the Licensing Agreement (Note 10) and additional licensing fees as they are earned. The Company has determined that the support services form an insignificant portion of the licensing contract as they are completed prior to delivery of 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 period ended February 28, 2018, the Company recognized $17,083
(Note 10) of deferred revenue and $167,000
of additional Licensing fees.
The additional Licensing fees consist of IP licensing fees for transfer of the Technology with the signing of definitive agreement for the DehydraTECH
technology with: the Cannfections Group Inc. for a
-year term for infused chocolates and candies to be developed and sold in Canada and internationally, NeutriSci International Inc. for a
-year term for the manufacturing and sale of CBD based products, and Biolog, Inc. for a
-year term to manufacture food and beverage infused products to be sold in the United States. The additional Licensing fees include payments due upon transfer of the Technology and installment payments that are receivable within
months (Note 7).