On July 16, 2019, Taronis Technologies, Inc. entered into a Distribution and License Agreement with Taronis Fuels, Inc. Under the terms of the License Agreement, the Company granted Taronis Fuels exclusive worldwide manufacturing and distribution rights to its proprietary metal cutting fuel “MagneGas” as well as any other gases created using the equipment and methods claimed by the Company's patents. The License Agreement also grants Taronis Fuels certain other rights related to the company's trademarks, patents and other intellectual property, including the ability to commercially manufacture and sell the company's Venturi® Gasification Systems for the creation of gases. Taronis Fuels will pay to the Company, on a monthly basis, a 7% royalty on any net cash proceeds received by Taronis Fuels in relation to the use of any intellectual property comprising the license.

The License Agreement does not convey use of the Company's intellectual property portfolio for any use related to the company's water sterilization/decontamination technology applications.