Quarterly report pursuant to Section 13 or 15(d)

License Agreements

License Agreements
9 Months Ended
Feb. 29, 2020
License Agreements
Note 9 – License Agreements
The Company has two license agreements with a third-party licensor covering the licensor’s
“system know-how” technology
with respect to the Company’s use of proprietary cell lines to manufacture new leronlimab (PRO 140) material. The Company accrues annual license fees of £600,000 (approximately US$800,000 utilizing current exchange rates), which fees are payable annually in December. The December 2019 and 2018 payments were extended to April 30, 2020 and April 15, 2019, respectively. Future annual license fees and royalty rate will vary depending on whether the Company manufactures leronlimab (PRO 140), utilizes the third-party licensor as a contract manufacturer, or utilizes an independent party as a contract manufacturer. The licensor does not charge an annual license fee when it serves as the manufacturer. In addition, the Company will incur royalties of up to 0.75% to 2% of net sales, depending upon who serves as the manufacturer, when the Company commences their first commercial sale, which will continue as long as the license agreement is maintained.