License agreements, research collaborations and development agreements

3 Months Ended

Mar. 31, 2016

License Agreements Research Collaborations And Development Agreements [Abstract]

License Agreements, Research Collaborations and Development Agreements

Note 10 - License agreements, research collaborations and development agreements

The Company is a party to three license agreements to acquire certain patent rights and technologies. Royalties are incurred upon the sale of a product or service which utilizes the licensed technology. Certain of the agreements require the Company to pay minimum royalties or license maintenance fees. The Company recognized $69,854 and $23,038 of royalty expense for the three months ended March 31, 2016 and 2015, respectively. In 2016, future minimum royalty fees are approximately $270,000 under these agreements.

In September 2013, the Company entered into a technology development agreement in which the Company would receive fixed milestone payments for meeting development milestones under the agreement. Since the milestones are substantive, the Company recognizes revenue in the periods in which the substantive milestones are achieved. In addition, the Company received an upfront payment of $250,000, which is recognized on a straight-line basis over the term of the technology development agreement which ended in December 2015. The Company recognized total revenue of $252,780 during the three months ended March 31, 2015 (none in 2016) relating to this arrangement.