Note 6. Fee Income

Fee income represents amounts earned by the Company under various license and other agreements relating to technology developed by the Company.

During the first six months of 2026, two licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 40% and 40% of fee income recognized during such period. During the first six months of 2025, four licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 35%, 33%, 13% and 13% of fee income recognized during such period.

During the three months ending June 30, 2026, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 35%, 35% and 18% of fee income recognized during such period. During the three months ending June 30, 2025, three licensees accounted for 10% or more of fee income of the Company; these licensees accounted for approximately 40%, 23% and 23% of fee income recognized during such period.

Subsequent to June 30, 2025, the Company was notified that one of its significant licensees filed for bankruptcy. The licensee accounted for approximately 33% and 0% of the Company’s revenue during the six and three months ended June 30, 2025, respectively. No revenue was recognized from this licensee during the periods ended June 30, 2026. There was no outstanding accounts receivable from this licensee as of June 30, 2026.