Note 3 - Significant Service Contracts

12 Months Ended

Dec. 31, 2011

Revenue Recognition, Long-term Contracts [Policy Text Block]

NOTE 3  - SIGNIFICANT SERVICE CONTRACTS:

For the years ended December 31, 2011, 2010 and 2009, the following three contracted fertility centers each individually provided greater than 10% of our revenues, net and/or contribution as follows:

	Percent of Company Revenues, net						Percent of Contribution
	2011		2010		2009		2011		2010		2009
Shady Grove Fertility Center		17.1		16.9		17.6		17.2		15.8		15.4
Fertility Centers of Illinois		10.2		11.3		13.1		9.5		9.3		10.3
Seattle Reproductive Medicine		6.7		5.6		6.0		12.0		8.8		8.6

Under our fertility Partner agreement with the Shady Grove Fertility Center, we receive as compensation for our services a three-part fee comprised of:  a percentage of the fertility center’s net revenues; reimbursed costs of services (costs incurred in servicing a fertility center and any costs paid on behalf of the fertility center); and a fixed dollar amount of the fertility center’s earnings after services fees which is subject to further limits.  

Our revenues from our Fertility Centers of Illinois Partner are not based on this three-part structure. Rather, effective as of November 1, 2009, our revenues from FCI are generally equal to the operating expenses associated with managing FCI’s medical practice plus 9.5% of such expenses.

Our revenues from our fertility Partner agreement with Seattle Reproductive Medicine are comprised of a three-part fee consisting of :  a percentage of the fertility center’s net revenues; reimbursed costs of services (costs incurred in servicing a fertility center and any costs paid on behalf of the fertility center); and a fixed percentage of the fertility center’s earnings after services fees which may be subject to further qualifications.