Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

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Subsequent Events
3 Months Ended
Nov. 30, 2016
Subsequent Events [Text Block]
18.

Subsequent Events


 

On December 1, 2016, the Company amended its agreement with CAB for a revised consulting fee of $12,000 per month. The term of the amended agreement is two years but can be terminated by either party by providing two months notice.

During the first 12 months after the date of the amended agreement with CAB, upon the Company achieving non-refundable revenues of $200,000 to any signle customer in any consecutive 60 -day period, CAB would be entitled to an award of 100,000 restricted common shares of the Company and after the first 12 -month period, expiring after 24 months of the amended agreement, upon the Company achieving non-refundable revenues of $200,000 to any single customer in any consecutive 60 -day period, CAB would be entitled to an award of 50,000 restricted common shares of the Company. These awards are limited to one payment per customer during the 24 -month period but payable for each customer that meets the revenue thresholds.

During the first 12 months after the amended agreement, the Company achieving non-refundable revenues of $500,000 in any fiscal quarter would result in an award to CAB of 200,000 common shares of the Company and after the first 12 months, expiring 24 months after the amended agreement, the Company achieving non-refundable revenues of $500,000 in any fiscal quarter would result in an award to CAB of 100,000 common shares of the Company. These awards are limited to one payment per fiscal quarter.

During the term of the amended agreement, for each provisional patent application substantively devised by CAB and successfully created, written and filed with the US Patent Office for the Company’s Technology, CAB will be entitled to an award of 250,000 restricted common shares of the Company.

 

On January 9, 2017, the Company issued 500,000 incentive warrants to an arm’s length party in exchange for corporate development services. The exercise price of the incentive warrants is $0.44, vesting immediately, and expiring on January 9, 2018.

 

 

 

 

Subsequent to November 30, 2016, 276,500 incentive stock options and 137,375 warrants were exercised for cash proceeds of $66,779.