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Investment in Medical Joint Venture
12 Months Ended
Dec. 31, 2011
Investment in Medical Joint Venture [Abstract]  
INVESTMENT IN MEDICAL JOINT VENTURE

NOTE F — INVESTMENT IN MEDICAL JOINT VENTURE

In March 2011, Milestone entered into an agreement with a People’s Republic of China ("PRC") entity (Bejing 3H) to establish a joint venture entity in the PRC to develop intra-articular and epidural drug delivery instruments utilizing Milestone’s patented CompuFlo technology. The PRC entity agreed to contribute up to $1.5 million to this joint venture entity, based on progress reports from Milestone and subject to refund if the instruments are not developed because of technological problems within 30 months of the inception date. Milestone evaluates the technological feasibility of the products to be developed using the CompuFlo technology periodically and at every reporting date, to establish if circumstances indicate that the technology continues to be feasible. Based on the available evidence Milestone concluded that the contingency associated with the return of capital to 3H would be remote as of December 31, 2011 and accordingly no amounts have been accrued in the accompanying financial statements relating to this contingency. The initial $500,000 capital contribution was to have been made at inception. The PRC joint venture entity was established in September 2011. However, to move the process forward, Milestone, with the consent of Beijing 3H, organized a domestic research and development corporation to which its joint venture partner completed a capital contribution of $500,000 to the US research and development corporation. The joint venture is owned fifty percent by the PRC entity and fifty percent by Milestone. Milestone contributed an exclusive worldwide royalty-free license to use CompuFlo technology to the joint venture which has been valued at approximately $245,000 and has accounted for its investment in the joint venture using the equity method of accounting.

Milestone will have distribution responsibility in the U.S. and Canada and the rest of the world, while Beijing 3H will distribute products exclusively in the PRC, Macao, Hong Kong and other regions of Asia. As of December 31, 2011, Bejing 3H has contributed $670,000 to the Joint Venture and the development project has been initiated.

The joint venture reimbursed Milestone approximately $105,000 for previously incurred research and development expenses, which has been included as a credit to research and development expenses in the accompanying statement of operations in 2011. The medical joint venture’s total year-to-date expenses were approximately $243,000 of which Milestone’s share of approximately $121,000 has been included in the accompanying statement of operations as the proportionate share of losses from the joint venture. Further, Milestone was authorized by the joint venture to manage and oversee the development of the two products for the joint venture. In connection with this, Milestone also entered into an agreement with a significant vendor to develop the two instruments included in the joint venture.