WordLogic Corp. announced the signing of a firm Letter of Intent to grant a non-exclusive global licensing agreement to all of WordLogic patents, including REACH patent-pending. WordLogic will however, grant an 18-month exclusive to allow the completion of the development and deployment of REACH technology.

Nirvana will be assisting in this endeavour with a private, well-funded venture firm. Nirvana has a wide clientele with divergent business verticals in a variety of industries including legal services, immigration, finance, e-commerce, construction, real estate, environment, food and transportation. The goal of this partnership is to apply REACH technology to already existing apps with a large user-base seeking a revenue model.

A 6-month development completion cycle is anticipated, along with a 10-month market penetration. The terms of agreement are as such: a one-time USD 250,000 cash payment where all revenue will be split 40% to WordLogic and 60% to the venture fund after commissions. The definition of commissions will be determined by the split paid to the app.

For example, a commission of 50% from all ad-revenue is paid to the app, then the remaining balance will be split 40/60 to the partnership. WordLogic's percentage will be paid on a gross basis, less cost of goods sold and commissions at the end of every quarter. As per example if 1 million users utilizing REACH in an app order 1 Groupon coupon purchase per year per user and click through ads presented by the REACH search mechanism twice a week would generate approx.

USD 3 million per quarter in revenue. Less commissions and partnership split would result in approx. USD 700,000 per quarter in revenue to WordLogic per 1 million users.

Under the terms of the LOI, a definitive agreement will be finalized within the next 10 days.