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LICENSING AGREEMENT
9 Months Ended
Dec. 31, 2019
Disclosure Text Block [Abstract]  
Licensing Agreement

NOTE 3 – LICENSING AGREEMENTS

 

United Kingdom and the Republic of Ireland, the Channel Islands and the Isle of Man

 

In March 2014, the Company entered into an Exclusive Marketing Rights Agreement with an unrelated third party, which granted 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 $1.321 million and $1.303 million as of December 31, 2019 and March 31, 2019, 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. As the Company now expects commercialization of the sugarBEAT device to occur in the second quarter ending September 30, 2020, approximately $66,000 and $65,000 of the deferred revenue has been classified as a current liability as of December 31, 2019 and March 31, 2019, respectively.

 

Further details of licensing agreements are disclosed in the Form 10-K for the year ended March 31, 2019.