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License Agreement with The Procter & Gamble Company (and its wholly owned subsidiary The Gillette Company)
6 Months Ended
Jun. 30, 2012
License Agreement with The Procter & Gamble Company (and its wholly owned subsidiary The Gillette Company) [Abstract]  
License Agreement with The Procter & Gamble Company (and its wholly owned subsidiary The Gillette Company)
Note 10 - License Agreement with The Procter & Gamble Company (and its wholly owned subsidiary The Gillette Company)

On December 9, 2010, we announced an amendment to the License Agreement with Procter & Gamble ("P&G") and Gillette. The amendment provided additional funding from each company to meet the common goal of a successful product launch. The amendment did not change the scope of P&G's non-exclusive license to Palomar's broad patent portfolio as well as its non-exclusive license to the extensive technology developed by Palomar prior to February 28, 2008 for home-use, light-based hair removal devices for women.  Under the amended License Agreement, the parties agreed to reduce pre-commercial launch quarterly technology transfer payments ("TTP Quarterly Payments" as defined in the License Agreement) from $1.25 million to $1.0 million for the calendar quarter ending December 31, 2010 and thereafter the TTP Quarterly Payments would be $2.0 million per year for an agreed period, after which the payments would return to $1.25 million per calendar quarter if no product has been launched. P&G was to apply the savings, together with agreed minimum overall program funding, to accelerating product readiness and commercialization while Palomar will be paid an increased percentage of sales after commercial launch.   The TTP Quarterly Payments under the amended license agreement were being recognized ratably through the expected launch term.

        During the three months ended June 30, 2012, P&G launched a light-based hair removal product and paid us an Additional TTP Quarterly Payment (as defined in the License Agreement) of $1.0 million.  This Additional TTP Quarterly Payment resulted in $0.7 million in other revenues during the second quarter of 2012 after being netted with the receivable from P&G as payments under the amended License Agreement were being recognized ratably through the expected launch term.  During the six months ended June 30, 2012, other revenues consists of $0.6 million related to TTP Quarterly Payments received under the amended License Agreement which were being recognized ratably through the expected launch term plus the $0.7 million previously mentioned.  For the three and six months ended June 30, 2011, other revenues consisted of the recognition of $0.6 million and $1.1 million, respectively, related to TTP Quarterly Payments received under the amended License Agreement.  The TTP Quarterly Payments under the amended License Agreement were being recognized ratably through the expected launch term.
 
Going forward, P&G will make technology transfer payments ("TTPs") based on a percentage of net sales of its light-based hair removal product.