OdorStar Joint Venture

12 Months Ended

Dec. 31, 2013

OdoStar Joint Venture [Abstract]

OdorStar Joint Venture

Note 4 – OdorStar Joint Venture

In 2010, the Company and BBL Distributors, LLC (“BBL”) organized OdorStar. OdorStar owns patents that relate to a formula and delivery system (the “Patents”), for use with products containing chlorine dioxide, designed to safely prevent and eliminate odors relating to mold, mildew and other sources of unpleasant odors. Under OdorStar’s Operating Agreement, each of the Company and BBL are required to make monthly payments to OdorStar, based on their purchases of products incorporating the patented technology, to provide for operating expenses. In addition, prior to August 6, 2013, OdorStar paid a royalty, funded by the Company and BBL based upon their respective sales of products encompassing the patented technology, to an unaffiliated company that sold the Patents to BBL (BBL subsequently contributed the Patents to OdorStar). On August 6, 2013, the Company purchased the unaffiliated company’s royalty rights for $160,000. The Company and BBL Distributors, LLC share equally in profits or losses from OdorStar. Because the Company manages OdorStar, it has consolidated OdorStar in its financial statements. The Company’s consolidated balance sheets include approximately $474,000 and $496,000 in assets and $16,000 and $7,000 in liabilities of OdorStar at December 31, 2013 and 2012, respectively. The Company’s consolidated statements of operations include OdorStar’s operating loss of approximately $51,000 and OdorStar’s operating loss of approximately $56,000 during the years ended December 31, 2013 and 2012, respectively. At December 31, 2013 the Company had an interest only note receivable of $111,420 due in 2015 from BBL for operating expenses owed related to OdorStar.