EXCLUSIVE SALES SUB-LICENSING AGREEMENT

12 Months Ended

Jul. 31, 2023

Exclusive Sales Sub-licensing Agreement

Note 8

EXCLUSIVE SALES SUB-LICENSING AGREEMENT

On April 19, 2022, DSI signed an exclusive sales and promotion sub-licensing agreement with Lucy Pet Products Inc. (“Lucy”) pursuant to which Lucy will manufacture, market and distribute pet products derived from the Cedoga intellectual property. The terms of the sub-licensing agreement are as follows:

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Lucy will pay the Company a one-time sub-license fee of $100,000 on execution of the sub-licensing agreement.

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Lucy will pay the Company royalties of 5% of Net Revenue, calculated and payable quarterly. Net Revenue is defined as total revenue less direct cost of materials, manufacturing, packaging and delivery expenses and less excise, sales or similar taxes.

On May 11, 2022, the Company received the first payment from Lucy of $100,000 under its sub-license agreement with Lucy and remitted $90,000 to Cedoga according to the Cedoga license agreement.

Point of Care Nano-Technology, Inc. 10-K/A