Commitments and Contingencies

9 Months Ended

Sep. 30, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and contingencies

8. Commitments and Contingencies

The Company currently leases warehouse space in Germany under a month to month operating lease with a monthly rental fee of 4,000 euro. The Company currently has 12 vehicles it leases for delivery and other purposes with expirations ranging from April 2014 through August 2015. In July 2013, the Company entered into a lease agreement for administrative office and warehouse space. The lease has a term of 5 years and requires minimum monthly rental payments starting at $2,277 per month increasing to $2,563 per month in year 5. No amounts were recorded for deferred rent for the rent escalation clauses as they were immaterial in 2014 and 2013. In total the leases require minimum monthly rental payments of approximately 5,100 euros.

The Company is currently in the process of obtaining default judgments against a number of customers who have defaulted on repayment on their outstanding invoices and the purchaser of a former subsidiary for non-payment. The total amount currently awaiting default judgments is approximately 428,000 euros. While the Company believes that it may recover substantially all of the amounts outstanding through the enforcement of the judgments, it currently has included reserves for 100% of the amounts owed as of March 31, 2014 and December 31, 2013 due to the difficulty of enforcement of any judgments obtained, especially across international borders.

On September 9, 2014, an amended complaint was filed against the Company in the United States District Court for the District of New Jersey by D&D Technology, Inc. (“D&D”) alleging, among other things, that the Company failed to pay amounts due for services rendered by D&D, a company that the Company engaged to design a device for the potential early detection of cancer.  The complaint seeks unspecified monetary damages and equitable relief, including a declaration that D&D owns the device.  On November 7, 2014, the Company filed an answer, counterclaim and third party claim denying the substantive allegations therein and seeking monetary damages and equitable relief, including a declaration that the Company owns the device and compelling the device be turned over to the Company, against D&D and certain employees of D&D