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3. Investments
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Mar. 31, 2012
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| Cost-method Investments, Description [Text Block] |
On
May 7, 2010 the Company obtained an exclusive license from
Machlink Inc. (“Machlink”), for rights to its
proprietary technology in wireless broadband Internet and
pursuant to a memorandum of understanding the parties entered
into on April 13, 2010, amended September 28, 2010 and
further amended by agreement December 31, 2011. The License
is for a period of ten years, renewable in ten year
increments thereafter.
Under
the amended agreement dated December 31, 2011, IGEN will
negotiate a license to sell, distribute, sub-license and
market Machlink’s system, platform and proprietary
information in all countries and global markets excluding:
Mexico, Belize, Bahamas, Cambodia, Thailand, Vietnam, and the
Ectel Countries of the SE Caribbean. Furthermore, IGEN is
licensed to market Machlink technology in Canada, Australia,
Europe, South America and the United States, on a
non-exclusive basis.
In
consideration two million (2,000,000) common shares of the
Company were issued to Machlink at fair value of $0.65 per
share and recorded at $1,300,000. The Company also paid
$267,000 on October 1, 2010, under the terms of the amended
agreement, for a new system from Machlink. This in addition
to the $200,000 consideration already paid to Machlink under
the terms of the original May 7, 2010 agreement, including,
$50,000 down, $50,000 paid on July 23, 2010, and $100,000
paid on September 17, 2010. Further, IGEN will pay a platform
fee at the rate of 3% of gross revenue for any systems
deployed through the efforts of IGEN.
On
December 31, 2011 the Machlink agreement was modified to the
issuance to Machlink of 1,000,000 shares of common stock of
the Company in return for the 2,000,000 shares originally
issued to Machlink being delivered to the Company for
cancellation and 43 shares of Machlink.
On
November 23, 2011 the Company expended $50,000 to Gogiro
Internet Group (Gogiro) to acquire 200,000 shares of Gogiro
pursuant to an option agreement to purchase up to 9.5% of
Gogiro represented byatotal of 800,000 shares at $0.25 per
share under the following terms:
(a) 200,000 of
the Common Shares Option expiring at 4:30 p.m. PST on March
31th, 2012 (exercised),
(b) 200,000 of
the Common Shares Option expiring at 4:30 p.m. PST on June
30th, 2012,
(c) 200,000 of
the Common Shares Option expiring at 4:30 p.m. PST on
September 30th, 2012,
Investments
in Machlink and Gogiro are carried at cost values as these
investments do not have a quoted market price in an active
market.
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