For customers with three or more REELEX machines, most license agreements had terms that linked usage fees to a percentage of net sales dollars of product sold in REELEX. In discussions with customers, we found a variety of issues with reporting, determining accurate sales numbers, and complaints regarding the impact of raw material pricing and how it affects usage fees.

As a result, we are moving forward with a new fee structure based on the amount of product using REELEX, not what it is sold for.