Equity Investment

12 Months Ended

Dec. 31, 2017

Equity Investment [Abstract]

Equity Investment

Note 11. Equity Investment

ASC 323, “Investments – Equity Method and Joint Ventures,” establishes accounting guidelines for an equity investment in which the Company has the ability to exercise significant influence, but does not have a controlling interest.  In this situation, the equity method should be applied to an investment.  Significant influence is generally considered to exist when the Company has an ownership interest in the voting stock of an entity between 20% and 50%, and other factors, such as representation on the Board of Directors, are considered in determining whether the equity method of accounting is appropriate.

On September 28, 2017, we made an equity investment in Vensica Medical (“Vensica”), a privately-held Israeli-based company developing VensiCare, an ultrasound based, needle-free drug delivery system.  Our $2 million investment gave us a 20% ownership in the company and allows us to have one seat on the Vensica Medical Board of Directors along with two call options to acquire the entire company for an additional $8 million.  The investment is accounted for using the equity method of accounting because the Company has significant influence, but not control, of the entity.

For the period ending December 31, 2017, our net loss in Vensica Medical was $128,640.  The equity investment in Vensica is now $1,871,360.