Derivative Instrument

9 Months Ended

Sep. 30, 2013

Derivative Instrument

Derivative Instrument

Note 13 — Derivative Instrument

As of September 30, 2013, the Company has one foreign currency contract outstanding with a notional amount of 15.7 million Danish krone (DKK) or $2.8 million.  The foreign currency contract was purchased to economically hedge the foreign currency fluctuation from the remeasurement of the third party seller financed note payable (Seller Note) which is denominated in DKK (Note 10).  The foreign currency contract has various settlement dates that coincide with the Company’s Seller Note payment schedule.  The term of the foreign currency contract coincides with the maturity of the Seller Note which is April 2, 2015.  The fair value of the contract resulted in an asset of approximately $217,400 at September 30, 2013, as compared to an asset of approximately $209,000 at December 31, 2012.  The increase in the fair value of the contract totaling approximately $103,100 for the three-month period ended September 30, 2013 and the increase of approximately $8,000 for the nine-month period ended September 30, 2013 were recognized in other income (expense) in the Condensed Consolidated Statements of Operations, the current portion of the receivable is recorded in other receivables, and the long-term portion is recorded in other assets as of September 30, 2013.