2.4.0.8016 - Disclosure - Contingenciestruefalsefalse1falsefalsefalsec4_From1Jan2013To30Jun2013http://www.sec.gov/CIK0001368993duration2013-01-01T00:00:002013-06-30T00:00:001true1us-gaap_CommitmentsAndContingenciesDisclosureAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false2us-gaap_CommitmentsAndContingenciesDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="left">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt; FONT-WEIGHT: bold">NOTE
12.  Contingencies</font>
</div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt">From
time to time the Company may be involved in claims arising in
connection with its business. Based on information currently
available, the Company believes that the amount, or range, of
reasonably possible losses in connection with any pending
actions against it, including the matter described below, in
excess of established reserves, in the aggregate, not to be
material to its consolidated financial condition or cash
flows. However, losses may be material to the Company’s
operating results for any particular future period, depending
on the level of income or loss for such period.</font>
</div><br/><div style="TEXT-INDENT: 0pt; DISPLAY: block; MARGIN-LEFT: 0pt; MARGIN-RIGHT: 0pt" align="justify">
<font style="DISPLAY: inline; FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt"><font style="FONT-STYLE: italic; DISPLAY: inline">Coalesce v.
WaferGen.</font>  On April 24, 2012, an action
entitled Coalesce Corporation (“Coalesce”) v.
WaferGen Bio-systems, Inc. was filed in the Alameda County
Superior Court. Coalesce, a company that had been providing
marketing services between 2006 and 2010, sued the Company
for alleged non-payment of sums due, breach of contract,
misrepresentation and unjust enrichment. On September 5,
2012, Coalesce filed an amended complaint, with additional
claims, for compensatory damages in excess of $500,000 and
other compensation. On April 15, 2013, the case was
referred to mediation. The Company believes the claim to be
substantially without merit, and while no assurance can be
given regarding the outcome of this litigation, management
believes that the resolution of this matter will not have a
material adverse effect on the Company’s financial
position and results of operations. Related legal costs are
being expensed as incurred.</font>
</div><br/><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify">
<font style="display: inline; font-family: times new roman,times; font-size: 10pt;">WaferGen
Malaysia.  In a letter dated May 29, 2013, counsel
for PMSB (see Note 5) indicated that PMSB intended to
pursue winding-up proceedings against WGBM pursuant to
Section 218(1)(e) and/or (i) of the Malaysian Companies Act,
1965. Such proceedings have not yet commenced.</font>
</div><br/><div style="text-indent: 0pt; display: block; margin-left: 0pt; margin-right: 0pt;" align="justify">
<font style="display: inline; font-family: Times New Roman; font-size: 10pt;">Pursuant
to the Series C SSA (see Note 5), the shareholders of
WGBM agreed that the subscription amounts raised through the
issuance of Series C CPS would be used, among other
things, to provide a term loan to the Company for its working
capital requirements (the “Intercompany Loan”).
The Intercompany Loan was made over the course of 2011 in the
amount of $5,000,000. As of June 30, 2013, the
Intercompany Loan balance, including accrued interest at the
London Inter-Bank Offer Rate (presently 3.25%), was
approximately $5.3 million.</font>
</div><br/><p>
<font style="font-family: times new roman,times; font-size: 10pt;">The
Company and WGBM are currently in discussions concerning the
potential conversion of the Intercompany Loan into promissory
notes to be issued by the Company to WGBM and which would
require a single payment of $6.6 million in seven
years.</font>
</p><br/><p>
<font style="font-family: times new roman,times; font-size: 10pt;">It
is anticipated that WGBM and the Company will continue to
have discussions with PMSB as well as MTDC regarding
PMSB’s attempts to redeem its Series B CPS in
WGBM, or alternatively force a winding up of WGBM. However,
there can be no assurance that those discussions will lead to
a negotiated outcome or that PMSB will not be successful in
its efforts to either redeem its Series B CPS or have
WGBM wound up. For as long as WGBM remains a consolidated
subsidiary of the Company, the Company’s debt to WGBM
will eliminate in consolidation. However, in the event that
WGBM is liquidated, its assets, including the Company’s
debt, could be distributed to WGBM’s investors, in
which case the Company would be required to record such debt
on its balance sheet, with an offsetting reduction in
derivative liabilities and temporary equity.</font>
</p><br/>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for commitments and contingencies.Reference 1: http://www.xbrl.org/2003/role/presentationRef
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