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Note 6 - Investment in Affiliated Company
9 Months Ended
Sep. 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, we 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. We have evaluated the cost versus equity method of accounting for its investment in Luxcel and determined that we do not have the ability to exercise significant influence over the operating and financial policies of Luxcel and, therefore, accounts for our 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. We believe that it is not feasible to readily estimate the fair value of our 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, we paid $200,000 for two license and distribution agreements with Luxcel which grants us access to proprietary technology on an exclusive basis for a period of four years. In addition, the terms of the distribution agreement allow us to contract for future 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 September 30, 2014, a prepaid expense of $219,000 was recognized on the Condensed Consolidated Balance Sheet as a result of our contracting for future services to be provided by Luxcel.                                               


As part of the relationship with Luxcel, we purchase sensors that 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.