License agreements, research collaborations and development agreements

3 Months Ended

Mar. 31, 2015

License agreements, research collaborations and development agreements

License agreements, research collaborations and development agreements

Note 9 - License agreements, research collaborations and development agreements

The Company is a party to two license agreements to acquire certain patent rights and technologies. Royalties are incurred upon the sale of a product or service which utilizes the licensed technology. Certain of the agreements require the Company to pay minimum royalties or license maintenance fees. The accompanying financial statements reflect $23,028 and $25,034 of total royalty expense for the three months ended March 31, 2015 and 2014, respectively.  In 2015, future minimum royalty fees are $20,000 under these agreements.

In September 2013, the Company entered into a technology development agreement in which the Company would receive fixed milestone payments for meeting development milestones under the agreement. Since the milestones are substantive, the Company recognizes revenue in the periods in which the substantive milestones are achieved; the Company attained sixteen milestones during 2014. In addition, the Company received an upfront payment of $250,000, which is recognized on a straight-line basis over the term of the technology development agreement. The Company recognized total revenue of $252,780 and $627,780 during the three months ended March 31, 2015 and 2014, respectively, relating to this arrangement.