Nexia Health Technologies Inc. has been ordered to pay C$2 million in damages to its former software vendor as part of a legal dispute.

An arbitrator ruled against the Canadian health technology company in January, upholding claims for breach of contract brought by the vendor. The C$2 million includes about C$410,000 in interest and C$140,000 for the vendor's share of arbitration costs, Nexia said in an Aug. 13 release.

Nexia Health strongly disagrees with the arbitrator's decision and is exploring legal options to respond to the ruling, the company said. Should the ruling stand, the company said its finances will be adversely affected as the award exceeds its existing cash reserves.