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 company re-negotiated one of its license agreements in April 2015 to reduce its annual minimum royalty arrangement and, therefore, the accompanying financial statements reflect $(44,526) and $24,298 of net royalty (income) expense for the three months ended June 30, 2015 and 2014, respectively and $(21,227) and $49,332 of net royalty (income) expense for the six months ended June 30, 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 $280,560 and $1,305,560 during the six months ended June 30, 2015 and 2014, respectively, and $27,780 and $677,780 during the three months ended June 30, 2015 and 2014, respectively, relating to this arrangement.