Note 11 - License agreements, research collaborations and development agreements

OpGen 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 recognized $7,484 and $23,810 of net royalty expense for the three months ended September 30, 2015 and 2014, respectively and ($13,769) and $73,142 of net royalty (income) expense for the nine months ended September 30, 2015 and 2014, respectively. In 2015, future minimum royalty fees are $20,000 under these agreements.

In September 2013, OpGen 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 $208,340 and $1,133,340 during the nine months ended September 30, 2015 and 2014, respectively, and $27,780 and $172,220 during the three months ended September 30, 2015 and 2014, respectively, relating to this arrangement.

In July 2003, AdvanDx entered into a non-exclusive, non-sublicensable, worldwide license agreement with Life Technologies, Inc. (“Life Technologies”) to use certain patent rights that allow it to manufacture and sell certain products. The agreement was amended multiple times through 2009 to add additional features and modify certain terms and conditions. Life Technologies is entitled to certain royalties on product sales. The Company expensed royalties of $150,570 since the Merger.