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Joint Development Agreement with CO2 Solutions
12 Months Ended
Dec. 31, 2013
Joint Development Agreement [Abstract]  
Joint Development Agreement with CO2 Solutions
Joint Development Agreement with CO2 Solutions
On December 15, 2009, the Company entered into an exclusive joint development agreement with CO2 Solutions, a company based in Quebec City, Quebec, Canada, whose shares are publicly traded in Canada on TSX Venture Exchange. The joint development agreement expired in January 2011. In January 2011, the Company extended its joint development agreement with CO2 Solutions on essentially the same terms as the original agreement. This exclusive arrangement expired in February 2013 and has not been extended.
Under the agreement, the Company obtained a research license to CO2 Solutions’s intellectual property and agreed to conduct research and development activities jointly with CO2 Solutions with the goal of advancing the development of carbon management technology. The Company also purchased 10,000,000 common shares (approximately 16.6% of the total common shares outstanding at the time of investment) of CO2 Solutions in a private placement subject to a four-month statutory resale restriction. This restriction expired on April 15, 2010. The Company concluded that it did not have the ability to exercise significant influence over CO2 Solutions’ operating and financial policies through December 31, 2013.
The Company’s investment in CO2 Solutions is classified as available for sale and is recorded at its fair value. During the year ended December 31, 2012 the Company recorded an impairment charge of $753,000, as the decline in the fair value of the investment was deemed to be other-than-temporary.