Note 12 - Earn Out Milestone Liability

12 Months Ended

Dec. 31, 2014

Earn Out Milestone Liability Disclosure [Abstract]

Earn Out Milestone Liability Disclosure [Text Block]

12. EARN-OUT MILESTONE LIABILIITY

The total aggregate purchase price for the Egen Acquisition included potential future Earn-Out Payments contingent upon achievement of certain milestones. The difference between the aggregate $30.4 million in future Earn-Out Payments and the $13.9 million included in the fair value of the acquisition consideration at June 20, 2014 was based on the Company's risk-adjusted assessment of each milestone (10% to 67%) and utilizing a discount rate based on the estimated time to achieve the milestone (1.5 to 7.0 years). The earn-out milestone liability will be fair valued at the end of each quarter and any change in their value will be recognized in the financial statements. As of December 31, 2014, the Company fair valued the earn-out milestone liability at $13.7 million and recognized a gain of $231,949 as a result of the change in the fair value of earn-out milestone liability from June 30, 2014. The fair value of the earn-out milestone liability at December 31, 2014 was based on the Company's risk-adjusted assessment of each milestone (10% to 67%) and utilizing a discount rate based on the estimated time to achieve the milestone (1.2 to 6.5 years).

The following is a summary of the changes in the earn-out milestone liability for 2014:

Balance at January 1, 2014	–
Fair value of Earn-Out Payments at date of EGEN Purchase Agreement (Note 5)		13,878,204
Gain from the adjustment for the change in fair value included in net income		(213,494	)
Balance at December 31, 2014	$	13,663,710