EXCLUSIVE SUPPLY AND PURCHASE AGREEMENT
|9 Months Ended|
Aug. 31, 2018
|EXCLUSIVE SUPPLY AND PURCHASE AGREEMENT [Text Block]||
The Company entered a Development, Supply and Manufacturing Agreement with the BIP manufacturer on August 1, 2017. This agreement provides the Company to order and purchase only from the BIP manufacturer certain BIP assemblies and components for use by the Company to produce less-lethal and training projectiles as described in the agreement in North America.
The agreement is for a term of four years with an automatic extension for additional one- year terms if neither party has given written notice of termination at least sixty (60) days prior to the end of the then- current term.
The Company entered a License and Supply Agreement with Safariland, LLC on May 1, 2017. This agreement provides the Company to license and sell only to Safariland, LLC for certain BIP standard payloads for integration with and production of certain less-lethal impact munitions in North America. This agreement is for a term of four years with an automatic extension for an additional one-year term if neither party have given written notice of termination at least ninety (90) days prior to the end of the then-current term.
As of August 31, 2018, the accounts receivable from one customer represents approximately 73% of accounts receivable (August 31, 2017 – 62% from one customers).
For the nine- month period ended August 31, 2018, one customer represented approximately 44% of total revenues (August 31, 2017 - 51% from two customers).
The entire disclosure for collaborative arrangements in which the entity is a participant, including a) information about the nature and purpose of such arrangements; b) its rights and obligations thereunder; c) the accounting policy for collaborative arrangements; and d) the income statement classification and amounts attributable to transactions arising from the collaborative arrangement between participants.
Reference 1: http://www.xbrl.org/2003/role/presentationRef