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Strategic Alliance with Alticor Inc.
6 Months Ended
Jun. 30, 2012
Strategic Alliance with Alticor Inc.

Note 5—Strategic Alliance with Alticor Inc.

 

Since March 2003, the Company has maintained a broad strategic alliance with several affiliates of the Alticor family of companies to develop and market novel nutritional and skin care products. The alliance previously included an equity investment, a multi-year research and development agreement, a licensing agreement with royalties on marketed products, the deferment of outstanding loan repayment and the refinancing of bridge financing obligations.

 

In October 2009, the Company entered into a Merchant Network and Channel Partner Agreement with Amway Corp., d/b/a/ Amway Global (“Amway Global”), a subsidiary of Alticor Inc. Pursuant to this Agreement, Amway Global sells the Company’s Inherent Health® brand of genetic tests through its e-commerce website via a hyperlink to our e-commerce site. We paid Amway Global $452,000 and $543,000 in commissions for each of the six months ended June 30, 2012 and 2011, representing a percentage of net sales to their customers.