More from MD&A - shouldn't this have been press released? The contract commenced July 1, 2013 and mirrors the length of iSIGN's contract with Mac's with an option for a five year renewal. iSIGN was to receive
payments of $1,460,000 annually; however iTrix defaulted on the initial payment of $250,000.
As of September 2013, the Company had not received any payments from iTrix. Consequently, the Company and iTrix are renegotiating new terms under
a revised agreement.
The circumstances of Couche-Tard’s notice of breach to the Company combined with the failure of iTrix to pay the Company, created increased
uncertainty of future cash flows to the Company to meet its ongoing contractual obligations. The Company determined that the Couche-Tard/Mac’s
intangible asset was impaired.
The Company has recorded an impairment of $897,000 against its intangible asset related to the Mac’s/Couche-Tard contract.