Dear pbhcf,

I assume that you were referring to the second quarter results and not the 3rd, as the 3rd quarter is not yet finished. I invite to take a look at our press release dated July 6th for more details and clarifications on this transaction.  We have mentioned the following:

‘The Contract with HPQ Polvere includes the sale of a provisional patent application (hereafter the “IP”) relating to the Reactor, for 3.3MM$ and the exclusive use, by HPQ Polvere, of the IP in the field of fumed silica manufacturing (the “Field”), together with a 10 % royalty on the Client’s future sales (“Royalty”) (with set minimums never to exceed 100% of revenues). PyroGenesis retains a royalty-free, exclusive, irrevocable, worldwide license to use the IP for all activities outside of the Field. This royalty stream can, at any time, be converted by PyroGenesis into a 50% ownership in HPQ Polvere.”

I hope this helps.

Rodayna on behalf of Peter.