Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
May 31, 2018
Revenues [Text Block]


      Nine Months Ended  
      May 31     May 31  
      2018     2017  
      $     $  
  Product sales   14,188     12,932  
  Licensing revenue   321,683     37,392  
  Freight revenue   1,062     756  
      336,933     51,080  

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 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 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 May 31, 2018, the Company recognized $17,083 of deferred revenue (Note 10) and $304,600 of additional Licensing fees (Note 7).

The additional Licensing fees consist of IP licensing fees for transfer of the Technology with the signing of definitive agreements for the DehydraTECH TM technology with: the Cannfections Group Inc. for a 7 -year term for infused chocolates and candies to be developed and sold in Canada and internationally, NeutriSci International Inc. for a 2 -year term for the manufacturing and sale of CBD based products, Biolog, Inc. for a 5 -year term to manufacture food and beverage infused products to be sold in the United States, GP Holdings LLC for infused beverages and topical skin products for a 5 -year term, and Nuka Enterprises LLC for their 1906 Chocolates for a 10 year term to include chocolate, candies, beverages, capsules and pills, and topical creams, replacing their chocolate only 2 year contract. The additional Licensing fees include payments due upon transfer of the Technology and installment payments that are receivable within 12 months (Note 7).