Contingent Liability text re Viziya from the 2Q statementsHere's the text. Let's hope their contract calculations have improved......
CONTINGENT LIABILITIES
In connection with Quarterhill’s original acquisition of VIZIYA in 2017, the Company agreed to pay VIZIYA’s former shareholders up to an additional US$11,900 in cash and common shares pursuant to the terms of the acquisition agreement if VIZIYA achieved certain targets for its earnings before interest, taxes and amortization (“Eligible Earnings”) between at least US$6,750 and US$11,850 for the period from April 1, 2017 to July 31, 2019. Additionally, if VIZIYA achieved cumulative Eligible Earnings during that period exceeding US$11,850, the Company would be required to pay 50% of the amount of those excess Eligible Earnings as additional contingent consideration until that cumulative Eligible Earnings reached a cap of US$23,700. In 2019, Quarterhill determined that VIZIYA did not achieve the minimum amount of cumulative Eligible Earnings for its former shareholders to be paid any additional amounts. In 2019, VIZIYA’s former shareholders initiated arbitration of the Eligible Earnings and additional payment calculations pursuant to the terms of the acquisition agreement. This arbitration and a related litigation matter were fully and finally settled in July 2022 including by way of Quarterhill making a $14,600 (approximately US$11,300) payment in cash; all other details of this settlement are confidential. The Company has recognized this payment through “Other Charges”.
On February 3, 2022, the United States District Court for the District of Delaware issued a decision that Wi-LAN Inc. ("WiLAN") be required to pay an award of attorney fees and related costs upon the issuance of an order in respect of litigation before that Court. On April 29, 2022, the United States District Court for the District of Delaware issued orders instructing WiLAN to pay US$3,146 to Sharp Electronics Corporation and US$1,032 to Vizio, Inc., representing a total amount of US$4,179. WiLAN filed appeals of these orders with the United States Court of Appeal for the Federal Circuit on May 31, 2022 and as at June 30, 2022, it was determined that it is not more likely than not that a legal liability exists as to these matters and, therefore, no provision has been made in the Company's financial statements related thereto