No OverhangHey Easy....
I can confirm that the part you have highlighted is a non-issue, as it referred to the first phase II trial only. There will be no overhang of $500,000....which is great news! Kayday can back me up on that info.
I do apologize for questioning you on that info, nice find on your part, but it is non-issue.
Contingency
Pursuant to the share purchase agreement from Transition, royalty payments may become due and
payable in accordance with this agreement upon realization of sales or licensing of
patent rights from
intellectual property in the Stem Cell Therapeutics Inc. portfolio. When the Company realizes sales of
products or processes, a royalty of 2% of net sales will become payable to Transition. In addition, if
patent rights are licensed, a royalty of 5% of the consideration for such licenses will become payable.
As part of the cross licensing agreement with a third party entered into in 2006, the Company paid
US$50,000 in 2009 (versus US$150,000 in 2008). Future payments of (a)
US$500,000 is payable upon
the successful completion of a Phase II clinical trial using the drugs referenced under the cross-license
agreement, and (b) US$1,000,000 payment payable upon its commercialization.