LICENSING AND OTHER REVENUE	3 Months Ended
Mar. 31, 2014
Notes to Financial Statements
Note 13. LICENSING AND OTHER REVENUE	In 2009, the Company entered into a License Agreement with Handok Pharmaceuticals Co., Ltd. (“Handok”) pursuant to which the Company granted Handok a license to develop, use, market, sell and import Symphony for continuous glucose monitoring for use by medical facilities and/or individual consumers in South Korea (the “Handok License”). The Handok License has a minimum term of 10 years from the date of the first commercial sale of Symphony in South Korea. The Company received a licensing fee of approximately $500,000 upon execution of the Handok License and the right to receive future milestone payments and royalties. The Company recognizes these upfront, nonrefundable payments as revenue on a straight-line basis over the contractual or estimated performance period. During the three months ended March 31, 2014 and 2013, the Company recorded approximately $19,000 and $23,000, respectively, of nonrefundable license revenue. As of March 31, 2014, approximately $76,000 is recognizable over the next 12 months and is shown as current deferred revenue. The remaining $57,000 is recognizable as revenue beyond the 12 month period and is classified as non-current. In December 2013, in connection with a capital raising transaction, the Company entered into a license, development and commercialization agreement with MTIA (the “License Agreement”). Later in December 2013 and January 2014, the License Agreement with MTIA was amended as a result of difficulties in transferring funds from MTIA to the Company under the capital raising transaction. The amendment provides that the Company is not required to commence its obligations under the License Agreement, including the transfer of any technology or other documents, products or information to MTIA, until the Company has received the full proceeds from the capital raising transaction. As of March 31, 2014, the Company had received $2,000,000 of MTIA’s $5,000,000 in proceeds in accordance with the capital raising transaction (see Note 8). Subsequent to March 31, 2014, the Company has received from MTIA an additional $400,000 in proceeds. A total of $2,600,000 in proceeds remains to be received from this transaction.

LICENSING AND OTHER REVENUE

3 Months Ended

Mar. 31, 2014

In 2009, the Company entered into a License Agreement with Handok Pharmaceuticals Co., Ltd. (“Handok”) pursuant to which the Company granted Handok a license to develop, use, market, sell and import Symphony for continuous glucose monitoring for use by medical facilities and/or individual consumers in South Korea (the “Handok License”). The Handok License has a minimum term of 10 years from the date of the first commercial sale of Symphony in South Korea.

The Company received a licensing fee of approximately $500,000 upon execution of the Handok License and the right to receive future milestone payments and royalties. The Company recognizes these upfront, nonrefundable payments as revenue on a straight-line basis over the contractual or estimated performance period. During the three months ended March 31, 2014 and 2013, the Company recorded approximately $19,000 and $23,000, respectively, of nonrefundable license revenue. As of March 31, 2014, approximately $76,000 is recognizable over the next 12 months and is shown as current deferred revenue. The remaining $57,000 is recognizable as revenue beyond the 12 month period and is classified as non-current.

In December 2013, in connection with a capital raising transaction, the Company entered into a license, development and commercialization agreement with MTIA (the “License Agreement”). Later in December 2013 and January 2014, the License Agreement with MTIA was amended as a result of difficulties in transferring funds from MTIA to the Company under the capital raising transaction. The amendment provides that the Company is not required to commence its obligations under the License Agreement, including the transfer of any technology or other documents, products or information to MTIA, until the Company has received the full proceeds from the capital raising transaction. As of March 31, 2014, the Company had received $2,000,000 of MTIA’s $5,000,000 in proceeds in accordance with the capital raising transaction (see Note 8). Subsequent to March 31, 2014, the Company has received from MTIA an additional $400,000 in proceeds. A total of $2,600,000 in proceeds remains to be received from this transaction.

- Definition

Disclosure of accounting policy for revenue recognition for licensing fees, which is consideration paid to the entity (licensor) by another party for the right to use, but not own, certain of the entity's intangible assets. Licensing arrangements include, but are not limited to, rights to use a patent, copyright, technology, manufacturing process, or trademark.

+ References+ Details