Annual report pursuant to Section 13 and 15(d)

Note 16 - Related Party Transactions

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Note 16 - Related Party Transactions
 12 Months Ended
Nov. 30, 2023
Notes to Financial Statements  
Related Party Transactions Disclosure [Text Block]

16.

RELATED PARTY TRANSACTIONS

 

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 terminated the royalty payments to the Company's former CTO in December 2021 and the Company granted 200,000 RSUs during the fiscal year ended  November 30, 2022 in exchange to waive all future rights and entitlements to the former CTO.  During the fiscal year ended  November 30, 2023, the Company and the former CTO agreed to immediately accelerate the 200,000 RSUs, which resulted in $0.5 million in accelerated stock compensation expense.  Refer to Note 19, "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 $0.03 million and $0.03 million during the years ended November 30, 2023, 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 $4.0 million for the fiscal years ended November 30, 2023 and 2022. The Company had accounts receivable, which are due within one year as of November 30, 2023, from Bersa S.A. of $1.6 million and $4.0 million as of  November 30, 2023 and  November 30, 2022 respectively.