XML 48 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Pria Asset Purchase Agreement
12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Note 5. Pria Asset purchase Agreement

On July 30, 2009, the Company executed an asset purchase agreement with PRIA Diagnostics, LLC, pursuant to which PRIA agreed to sell to the Company certain of PRIA’s patents, trademarks, other intellectual property assets and certain fixed assets. The aggregate purchase price for such assets was $725,000, comprised of cash and shares of Company common stock.

 

Under the asset purchase agreement, the Company was required to make additional contingent payments, in the form of cash and common stock, upon the occurrence of certain milestone events. Such cash milestone payments were to be made by QND (see Note 4). In addition, QND was required to pay royalties to PRIA on a quarterly basis upon the commercialization of a product utilizing the acquired technologies for five years from the initial sales date of the first such product sold. The Company also agreed under the asset purchase agreement to offer to PRIA the first opportunity to manufacture certain products utilizing the acquired technologies before entering into any agreement or arrangement with a third party to manufacture such products.

 

During the year ended December 31, 2011, in connection with the settlement of litigation related to QND, the Company settled its obligations to PRIA in consideration for the payment to PRIA of $5,000, and the issuance of 500,000 shares of the Company's common stock with a deemed value of $15,000.