Quarterhill mediation resolves contract issue

Executive Summary

• Quarterhill Inc. has reached a favorable mediation agreement with a tolling customer to resolve previously disclosed contract renegotiation issues.
• The agreement includes a one-time payment to Quarterhill in Q3 2025 for historical cost-recovery, pending final approval by the customer's governing body.
• The new terms secure improved payment structures, enhanced performance standards, and a framework that raises annual revenue while reducing costs.

Key Details

• Resolution Method: Constructive mediation resulting in a reset of the relationship on positive new terms.
• Financial Impact (One-Time): A one-time payment to Quarterhill is scheduled for the third quarter of 2025 to address historical cost-recovery matters.
• Contractual Terms:
  • Improved payment terms and enhanced performance standards.
  • Structure designed to raise annual revenue while simultaneously reducing costs associated with the previous contract.
  • Termination-for-convenience provision covering a three-year operations and maintenance period.
  • Financial incentives included to support stronger margins and reward exceptional performance.
• Strategic Impact: The resolution aims to strengthen the long-term partnership, improve predictability, and support the company's operational transformation and forward-looking growth.

Notable Quotes

• "This outcome represents an exciting step forward for Quarterhill and our valued customer... By working together in good faith, we've not only resolved past issues but created a framework that strengthens our relationship, improves predictability and sets the stage for long-term success." — Chuck Myers, Chief Executive Officer of Quarterhill.