Quarterly report pursuant to Section 13 or 15(d)

LICENSE, SETTLEMENT AND RELEASE AGREEMENT

v3.20.1
LICENSE, SETTLEMENT AND RELEASE AGREEMENT
3 Months Ended
Mar. 31, 2020
License Settlement And Release Agreement [Abstract]  
LICENSE, SETTLEMENT AND RELEASE AGREEMENT LICENSE, SETTLEMENT AND RELEASE AGREEMENTOn January 23, 2020, the Company and each of its subsidiaries entered into a Confidential Patent License and Settlement Agreement (collectively, the “2020 License Agreements”) with Bitdefender Inc., a Florida Corporation and Bitdefender S.R.L., a Romanian corporation (collectively, “Bitdefender”). As part of the 2020 License Agreements, Bitdefender will obtain a license to, among others, the patents of Finjan, Finjan Mobile, and Finjan Blue, and pay Finjan $3.8 million in cash, of which $3.2 million was received during the quarter ended March 31, 2020, the remaining $0.6 million is currently being withheld for tax purposes and will be remitted upon delivery of FORM 6166 (Tax Residency Certificate). We await receipt of FORM 6166 from the US Department of Treasury. The Company recognized $3.8 million as revenues as of January 23, 2020, in accordance with the Company’s revenue recognition policy as described in Note 1, Further, upon acquisition of Bitdefender or acquisitions by Bitdefender, additional one-time license fees may be due to Finjan. The remaining terms of the License Agreements are confidential.