NOTE 6 - LICENSE AGREEMENT | 9 Months Ended |
31-May-14 |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
NOTE 6 - LICENSE AGREEMENT | ' |
NOTE 6 - LICENSE AGREEMENT |
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On May 15, 2014, the Company entered into a two (2) year License Agreement (the “License Agreement”) with IPIN Debit Network, Inc., a New Brunswick, Canada corporation (“IPIN”) for the former’s use and distribution of IPIN’s technology, systems and products in the nature of electronic payments processing and its United States Letters Patents. After the two (2) year period, the License Agreement shall be automatically renewable for successive one (1) year periods for an additional ten (10) years provided that IPIN has received a minimum of Five Million ($5,000,000) dollars in Royalty payments for each of the three (3) through twelve (12) successive years from the signing of the License Agreement. |
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Pursuant to the License Agreement, the Company will be required to pay IPIN Two Hundred Fifty Thousand ($250,000) Dollars in the following amounts as per the terms of the License Agreement: |
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| a) | in consideration for the licenses granted hereunder, the Company agrees to pay to IPIN Two Hundred Fifty Thousand United States Dollars ($250,000) (hereinafter the “License Fee”). |
| b) | the License Fee owed IPIN shall be payable according to the following schedule when IPIN achieves certain benchmarks: |
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| i. | $10,000 upon execution of this License Agreement; |
| ii. | $20,000 when IPIN successfully demonstrates the integration, publishing design, and on-boarding screens of its technology with the Android application package file (apk); |
| iii. | $20,000 when IPIN successfully integrates the Android app with the IPIN device as demonstrated by transferring the transaction details to the app after a card swipe occurs; |
| iv. | $60,000 when IPIN successfully demonstrates a card transaction including posting the status to the merchant call back uniform resource locator (url); |
| v. | $60,000 when IPIN successfully demonstrates a front end data base set up that enables an IPIN device user to affect an IPIN device transaction; |
| vi. | $60,000 when IPIN successfully demonstrates the completed, back-end development of the IPIN device Android app including any and changes needed to support it; and |
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As of May 31, 2014, the Company paid $10,000 License Fee and prepaid License Fee $66,620 to IPIN. The Company received 1,000,000 common shares from iPIN. The Company has not issued 1,000,000 shares to IPIN as of this filing. The Company recorded this investment $164,521(as par value Euro 0.12) and other liability $164,521, secured by the stock of IPIN. |
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