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Note 6 - Investment in Affiliated Company
6 Months Ended
Jun. 30, 2014
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

Note 6 – Investment in Affiliated Company


In January 2010, the Company acquired a minority equity ownership interest in Luxcel Biosciences Limited (Luxcel) based in Cork, Ireland. The investment of €2.5 million (approximately $3.6 million) amounted to a 16.9% equity interest in Luxcel. The Company has evaluated the cost versus equity method of accounting for its investment in Luxcel and determined that it does not have the ability to exercise significant influence over the operating and financial policies of Luxcel and, therefore, accounts for its investment on a cost basis. The investment in Luxcel is carried on our condensed consolidated balance sheets at the original purchase price, adjusted for currency fluctuations. The Company believes that it is not feasible to readily estimate the fair value of its investment in Luxcel. Information related to future cash flows of Luxcel is not readily available as the entity is a start-up research and development company and future cash flows are highly dependent on their ability to obtain additional funding, gain acceptance of its products in the marketplace, and obtain regulatory approvals.


During 2013, the Company paid $200,000 for two license and distribution agreements with Luxcel which grants the Company access to proprietary technology on an exclusive basis for a period of four years. In addition, the terms of the distribution agreement allow the Company to contract for future research and development services. These services are purchased through upfront payments tied to specific work orders and are refundable if the work is cancelled,  excluding amounts incurred for work completed up to the cancellation date.  At June 30, 2014, the Company has recognized a prepaid expense of $257,000 on the Condensed Consolidated Balance Sheet as a result of the Company contracting for future services to be provided by Luxcel.                                               


As part of the relationship with Luxcel, the Company purchases sensors which accompany our instruments for sale to an end user and we are required to pay a royalty to Luxcel on the sale of such instruments.