Precision Optics Corporation, a leading designer and manufacturer of advanced optical instruments for the medical and defense industries, announced it has signed a production and technology license agreement with a large, global medical device company.

The licensing agreement arises from a joint product development initiative with this customer over the past four years. The agreement grants the medical device company exclusive rights for an agreed period of time to certain POC intellectual property, within a defined and limited field of use in the ophthalmic industry.

The agreement sets terms under which POC will manufacture the product or receive royalties if the product is manufactured by the customer or a third-party.  Under the agreement, POC has received a one-time upfront payment of $600,000 for these technology rights.

Initial production of this product is expected to occur at POC's facilities in late-2023. The customer has the right to transfer production to one of their facilities or to a third-party manufacturer, in which case POC would assist in such transfer and would be paid royalties for a period of time on all product manufactured at a non-POC facility.

"This agreement to leverage our intellectual property and know-how surrounding single-use disposable medical devices adds a new dimension to Precision Optics' business strategy and growth outlook," commented Dr. Joe Forkey, CEO of Precision Optics. "We expect that in the long run, royalties from programs such as this will help to continue our recent trend of improving overall profitability.  Today's announcement is the result of many years of discussion and partnership with our customer, and we believe it represents a business approach to satisfying the unique economics required for single-use applications. We look forward to advancing this and other single-use programs in the years to come."