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Purchased Asset and Investments
12 Months Ended
Dec. 31, 2011
Business Combinations [Abstract]  
Purchased Asset and Investments

NOTE 3 – PURCHASED ASSET AND INVESTMENTS

 

                Acquisition of interest in RadQual, LLC

 

The Company has total ownership in RadQual, LLC of 24.5%, which is accounted for under the equity method of accounting.  Under the equity method, the Company records its proportionate share of the earnings and losses of RadQual, LLC.

 

                Acquisition of interest in TI Services, LLC

 

During December 2010, the Company together with RadQual, LLC, formed a 50% owned joint venture called TI Services, LLC. TI Services, LLC was formed to acquire the assets of Technology Imaging Services, Inc. which were held by a bank as collateral under a defaulted loan. TI Services, LLC is engaged in the distribution and selling of products related to the nuclear medicine industry. TI Services, LLC was initially capitalized with $190,000 from the Company and $190,000 from RadQual, LLC, and purchased certain trade receivables valued at $340,132, inventory of $32,318, and cash of $7,550. Because the Company controls more than a 50% direct and indirect ownership interest in TI Services, LLC, the assets and liabilities of TI Services, LLC are consolidated with those of the Company, and RadQual, LLC’s non-controlling interest in TI Services, LLC is included in the Company’s financial statements as a non-controlling interest. During 2011, the Company and RadQual, LLC each made an additional $20,000 investment in TI Services, LLC.

 

As part of the original transaction, the Company made a loan to RadQual, LLC in the amount of $87,500 to facilitate RadQual, LLC’s ability to be a 50% partner with the Company in TI Services, LLC. This loan is included in the Company’s financial statement at December 31, 2010 as due from a related party. This note was paid in full in June 2011.