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On
June 8, 2017, the Company and Florida Precision Aerospace, Inc. (FPA), its wholly owned subsidiary, completed the Technology
Purchase Agreement dated March 13, 2017 with Schlumberger Technology Corporation, a Texas corporation, Schlumberger Canada
Limited, a Canadian entity, and Schlumberger B.V., an entity organized under the laws of the Netherlands (collectively,
(“Schlumberger”). At closing, the Company sold its intellectual property (the “Purchased Intellectual
Property”), substantially consisting of the Company’s Voraxial patents, marks, software and copyrights, to
Schlumberger in consideration of up to $4,000,000, of which $3,000,000 was paid to the Company at closing and $1,000,000
is payable upon the completion of both: (i) the complete transfer of the Purchased Intellectually Property to Schlumberger;
and (ii) the provision to transfer information, assets and services to Schlumberger, which is estimated to be approximately
12 months from the closing date. The Company recognized a gain on the sale of its intellectual property of $3,000,000. As a result of this transaction, for the six months ended June 30, 2017 the Company had other
income of $2,886,653 and net income of $2,574,452. For the six months ended June 30, 2016 the Company had other income
(expense) of ($100,820), primarily related to a loss on transfer of leased assets.
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