Quarterly report pursuant to Section 13 or 15(d)

Commitments, Significant Contracts and Contingencies

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Commitments, Significant Contracts and Contingencies
 3 Months Ended
Nov. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments, Significant Contracts and Contingencies
16. Commitments, Significant Contracts and Contingencies

 

 
As at November 30, 2018, the Company is party to the following contractual commitments:
 

Party

Monthly Commitment

 

Expiry Date

C.A.B Financial Services (1) (2)

 

          $12,000

 

Month to Month

Docherty Management Ltd. (1) (2)

 

CAD $15,000

 

March 1, 2019

M&E Services Ltd. (1)

 

CAD $12,000

 

June 1, 2021

Corporate Development

 

CAD $4,000

 

Month to Month

Corporate Development

 

CAD $1,000

 

January 16, 2019

Investor relations and communications – Alex Blanchard Capital(1)

 

CAD $7,500

 

Month to Month

Office Management(3)(4)

 

CAD $6,500

 

December 1, 2019

Research & Development

 

CAD $3,854

 

Month to Month

Office Rent(5)

 

CAD $4,823

 

November 15, 2023

  

Revenue Incentive Milestones

 

 
(1) 100,000 common shares issuable upon the Company achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period for the first 12 months of the contract, plus a further 50,000 common shares issuable upon achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period, during the 13th - 24th months of the contract. If the Company achieves non-refundable revenues of $500,000 in any fiscal quarter, a further 200,000 common shares may be issuable during the first 12 months of the contract and 100,000 common shares during the 13th - 24th months of the contract.

  

 

Intellectual Property Milestones

 

 

 

(2) During the term of the agreement, for each provisional patent application substantively devised and successfully created, written, and filed with the U.S. Patent Office for the Company’s Technology, 250,000 restricted common shares of the Company will be issuable.

 

 

 

Corporate Development Milestones

 

 

 

(3) For new customers sourced by the Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60-day period would result in a restricted common share award of 100,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; a restricted common share award of 50,000 Company shares may be achieved; this clause is limited to one payment per customer during the 12-month period, but payable on each customer that meets these sales/licensing thresholds.

 

 

 

(4) For new customers sourced by the Consultant for the first 12 months of the contract; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 200,000 Company shares (not achieved); and, during the 13th - 24th months of the contract; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non-refundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 100,000 Company shares; this clause is limited to one payment per fiscal quarter.

 

 

 

Office Management Milestones

 

 

 

(3) Until December 1, 2018 for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving nonrefundable revenues of $200,000 would result in a restricted common share award of 75,000 Company shares; and from December 2, 2018, until December 1, 2019 for combined Lexaria Energy and ViPova products and including all sales efforts, achieving nonrefundable revenues of $200,000 would result in a restricted common share award of 40,000 Company shares; this clause limited to one payment per customer during the 24month period, but payable on each customer that meets these sales/licensing thresholds;

 

 

 

(4) Until December 1, 2018 for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving nonrefundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 150,000 Company shares; and, from December 2, 2018, until December 1, 2019 for combined Lexaria Energy and ViPova products and including all sales efforts, achieving nonrefundable revenues of $500,000 in any fiscal quarter would result in a restricted common share award of 80,000 Company shares; this clause limited to one payment per fiscal quarter.

 

 

 

Corporate Offices

 

  

 

(5) Corporate office and R&D lab space leased in Kelowna, British Columbia, Canada until November 15, 2023 with an option to extend an additional five years. Base rent is CAN$12.56 per square foot until November 14, 2019, CAN$12.86 per square foot until November 14, 2021 and CAN $13.21 per square foot until November 14, 2023 plus common area maintenance and taxes.