XML 14 R12.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Commitment and Contingencies
3 Months Ended
Jun. 30, 2011
Commitment and Contingencies  
Commitments Disclosure [Text Block]

NOTE 10 – COMMITMENTS

 

The Company leases a manufacturing and office facility from a related party as an operating lease which expires in 2015.  This lease currently requires monthly payments of $5,533 plus related insurance and maintenance.  Rental expense under this lease for the three and nine months ended June 30, 2011 was $16,599 and $49,797, respectively, all of which was paid to a related party.  Total future lease payments through September 30, 2015 are $282,193.

                                               

The Company has an employment agreement with Jeff Bozanic to develop its re-breather technology.  The agreement is for three years starting January 1, 2010 at a cost of $10,000 per month. As of June 30, 2011, the Company owed Mr. Bozanic $180,000.  This amount is classified as accrued expenses – related parties on the balance sheet.

 

Prior to the asset purchase agreement  between Blu Vu and Deltron, Blu Vu was in negotiations with Radikal, AS (“Radikal”), the owner of intellectual property involving rebreather technology, to purchase its intellectual property involving said technology.  At that time, Blu Vu did not own any rebreather technology.  No agreement was reached between Blu Vu and Radikal prior to the asset purchase agreement with Deltron.   On August 4, 2010, the Company entered into an agreement with Radikal to purchase its intellectual property involving said technology (the “Radikal Agreement”).  The Radikal Agreement requires the Company to pay a per unit fee of $35 for at least 500 units per year for 2 years, after which the obligation to Radikal will be fulfilled.

 

Pursuant to the terms of the Radikal Agreement, Radikal has transferred all U.S. and international patent rights to the Company. If the per unit fee payments are not made when due, Radikal has the right to the return of the intellectual property transferred. Payments for these rights are not required to begin until January 2012.