Note 7 – Related Party Transactions

In November 2016, the Company and Dialog entered into an alliance agreement for the manufacture, distribution and commercialization of products incorporating the Company’s wire-free charging technology (See Note 4 – Commitments and Contingencies, Strategic Alliance Agreement). On November 7, 2016 and June 28, 2017, the Company and Dialog entered into securities purchase agreements under which Dialog acquired a total of 1,739,691 shares and received warrants to purchase up to 1,417,565 shares. As of September 30, 2021, none of the warrants remain outstanding. As of September 30, 2021, Dialog owns approximately 2.8% of the Company’s outstanding common shares. The Company recorded $0 and $0 for the three months ended September 30, 2021 and 2020, respectively, and $0 and $0 in for the nine months ended September 30, 2021 and 2020, respectively, in royalty revenue. Additionally, the Company recorded $0 and $0 in contract services revenue performed for Dialog during the three months ended September 30, 2021 and 2020, respectively, and the Company recorded $0 and $130,000 in contract services revenue performed for Dialog during the nine months ended September 30, 2021 and 2020, respectively. The Company recorded $0 and $0 in cost of services revenue associated with contract services performed for Dialog during the three months ended September 30, 2021 and 2020, respectively, and the Company recorded $0 and $126,539 in cost of services revenue associated with contract services performed for Dialog during the nine months ended September 30, 2021 and 2020, respectively. Additionally, the Company incurred $225,000 and $0 in chip development expense from Dialog, during the three months ended September 30, 2021 and 2020, respectively, and the Company incurred $408,000 and $0 in chip development expense from Dialog during the nine months ended September 30, 2021 and 2020, respectively.

On September 20, 2021, the Company was notified by Dialog, recently acquired by Renesas Electronics Corporation, that it was terminating the strategic alliance agreement between the Company and Dialog.