Note 4 - LICENSING AGREEMENT

12 Months Ended

Mar. 31, 2016

Disclosure Text Block [Abstract]

Note 4 - Licensing Agreement

In March 2014, the Company entered into an Exclusive Marketing Rights Agreement with an unrelated third party, that granted to the third party the exclusive right to market and promote the sugarBEAT device  and related patches under its own brand in the United Kingdom and the Republic of Ireland, the Channel Islands and the Isle of Man The Company received a non-refundable, up front cash payment of GBP 1,000,000 (approximately $1.432 million and $1.538 million as of March 31, 2016 and March 31, 2015 respectively) which is wholly non-refundable, upon signing the agreement.

As the Company has continuing performance obligations under the agreement, the up front fees received from this agreement have been deferred and will be recorded as income over the term of the commercial licensing agreement. 

In April 2014, a Letter of Intent was signed with the third party which specified a 10 year term and in November 2015, a Licence, Supply and Distribution agreement with an initial 5 year term was executed.

In addition, in November 2015, we entered into a joint venture agreement with the third party, whereby we will share the costs and net profits of the sales of the sugarBEAT system in all territories in Europe, with the exception of the territories that are the subject of the separate licensing agreement as described above. The full commercial agreement is expected to be signed towards the end of 2016.