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Revenue Recognition
6 Months Ended
Jun. 30, 2012
Revenue Recognition [Abstract]  
REVENUE RECOGNITION

2. REVENUE RECOGNITION

The Company considers revenue to be earned when all of the following criteria are met: persuasive evidence a sales arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. The Company’s agreements with dermatologists regarding the MelaFind ® system combines the elements noted above with a future service obligation. While the Company is required to place the MelaFind® system with dermatologists for their exclusive use, ownership of the MelaFind ® system remains with the Company.

In the U.S., the Company generates revenue primarily from the sale of single-use electronic patient record cards. These cards activate the MelaFind ® system, capture data and store the data for each patient visit. Additionally, the Company typically charges an initial installation fee for each MelaFind ® system which covers training, delivery, supplies, maintenance and the right to use MelaFind ®. In accordance with the accounting guidance regarding multiple-element arrangements, the Company defers revenue for the undelivered service element based upon the relative standalone selling prices, and recognizes the associated revenue over the related service period, generally expected to be two years.

In Germany, the typical contract with dermatologists calls for a fixed monthly fee and a per patient usage charge. Revenue generated from German contracts is recognized when earned.