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Deferred Revenue and Income
 9 Months Ended
Sep. 30, 2014
Accounting Policies [Abstract]  
Deferred Revenue and Income

NOTE 8.  DEFERRED REVENUE AND INCOME

 

Deferred revenue consists of amounts received for products or services not yet delivered or earned. Deferred income consists of amounts received for commitments not yet fulfilled. If we anticipate that the revenue or income will not be earned within the following twelve months, the amount is reported as long-term deferred income. A summary of the balances as of September 30, 2014 and December 31, 2013 follows (in thousands):

 

Deferred Revenue and Income
(in thousands)
   September 30,
2014		  December 31,
2013
Prepaid royalties  $61   $69 
Fisher agreement   13    13 
Total current deferred revenue and income  $74   $82 
           
Arizona Commerce Authority Grant (see Note 7)  $750   $750 
Fisher agreement   13    27 
Total long-term deferred income  $763   $777 

 

Deferred revenue includes prepaid royalty fees. In September 2011, $100,000 of prepaid royalty fees was received of which $2,000 and $3,000 were recognized during the three-month periods ended September 30, 2014 and 2013, respectively, and $8,000 and $15,000 were recognized during the nine-month periods ended September 30, 2014 and 2013, respectively. Recognized amounts are reflected as licensing and royalty revenue.

 

Deferred income includes a $40,000 payment received from Fisher Scientific in July 2013, of which $13,000 and $0 has been recognized as an offset against research and development expenses in the three-month and nine-month periods ended September 30, 2014 and 2013, respectively. We anticipate earning $13,000 of the remaining amount in the next twelve months and the final $13,000 in future years.

 

Through September 30, 2014, $750,000 in milestone payments from the Arizona Commerce Authority were received of which none has been recognized in income and we do not anticipate earning any of it in the next fiscal year. Further details regarding the Arizona Commerce Authority agreement are included in Note 7, License Agreements and Grants.