Note 1 - Nature of Operations
Xtralink Corp. was incorporated in Nevada on July 29, 2010. The Company’s business objective is to license Water Conversion Technology through qualified interests and establish bottled water operations through a joint venture. The Company is considered a "Development Stage Company" through July 31, 2012. Operations began in August, 2012.
On June 10, 2012, the Company entered into a Licensing Agreement (the “Agreement”) with Oxford International Inc. (“Oxford”), to license proprietary technology relating to converting municipal water to oxygen enriched pH balanced water (the “Water Conversion Technology”). The Company obtained exclusive licensing rights in the country of Singapore for a period of 20 years. The Company will have exclusive rights to sub-license, establish joint ventures and to commercialize products through the methods of the Water Conversion Technology. The license fee is $ 40,000 payable on or before August 31, 2012. The Company is subject to a royalty of 2% on licensee fees received from appointed sub-licensees as well as 2% on gross sales generated from operations.
The Company is obligated to establish water bottling operations by December 31, 2013. In the event that the Company has not established operations by this date, Oxford has a right to void the Agreement.
On June 13, 2012, the Company entered into a Sub-License Agreement with Lumut Technologies Ltd. (“Lumut”), to grant exclusive rights to sub-license, establish joint ventures and to commercialize products through the methods of the Water Conversion Technology for a period of 20 years in the country of Singapore. Lumut will be subject to a sub-license fee of $ 60,000 payable in monthly installments of $ 4,000 per month commencing August 15, 2012 ending, December 15, 2013. As per the Agreement with Oxford, 2% of any sub license fees received is payable on a quarterly basis. As additional consideration, gross sales from products generated from use of the Water Conversion Technology will be subject to a 5% royalty fee of which 2% is payable to Oxford and 3% will be retained by us. Lumut will also be required to establish bottled water operations by December 31, 2013 and in the event that this is not achieved, our agreement with Lumut will be void. License fees paid are not refundable.
The Company has a right to participate in joint venture operations with Lumut for a $ 150,000 investment for 40% ownership of the joint venture.