Note 18 - Related Party Transactions |
9 Months Ended | ||
|---|---|---|---|
Aug. 31, 2023 | |||
| Notes to Financial Statements | |||
| Related Party Transactions Disclosure [Text Block] |
The following transactions are in the normal course of operations and are measured at the amount of consideration established and agreed to by related parties. Amounts due to related parties are unsecured, non-interest bearing and due on demand.
The Company pays royalties to the Company's Chief Technology Officer ("CTO") for sales on fintail projectiles. The Company expensed $0.01 million and $0 for royalties due to the Company's CTO during the nine months ended August 31, 2023 and 2022, respectively, and expensed less than $0.01 million and $0 due to the Company's CTO during the three months ended August 31, 2023 and 2022, respectively. Balances payable to the CTO for royalties were $0.01 million and $0 as of August 31, 2023 and November 30, 2022 respectively.
In January 2022, the Company and the CTO agreed to waive all future rights and entitlements under a certain purchase and sale agreement, including without limitation any right, title, or interest in the intellectual property or royalty fees except for those on the fintail projectiles in December 2021 in exchange for 200,000 RSUs. Refer to Note 21, "Commitments and Contingencies - Royalty Payments," for additional information.
The Company subleases office premises at its Massachusetts headquarters to a corporation owned and controlled by the Chief Executive Officer ("CEO") of the Company beginning July 1, 2020, with no stated termination date. Sublease payments received were $0.06 million and $0.03 million for the nine months ended August 31, 2023 and 2022, respectively. Sublease payments received were less than $0.01 million for the three months ended August 31, 2023 and 2022, respectively.
Fusady is owned, in equal 25% shares, by four individual investors. These four individuals also each own 25% of Bersa S.A. Bersa S.A. is a distributor of the Company’s products in Argentina. The Company’s sales to Bersa S.A. were less than $0.06 million and $0.1 million for the three and nine months ended August 31, 2023, respectively. The Company had accounts receivable, which are due within one year as of August 31, 2023, from Bersa S.A. of $2.2 million and $4.0 million as of August 31, 2023 and November 30, 2022 respectively.
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