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License agreements, research collaborations and development agreements
9 Months Ended
Sep. 30, 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 net royalty expense of $71,135 and $216,937 for the three and nine months ended September 30, 2016, respectively. The Company recognized net royalty expense (income) of $7,484 and ($13,769) for the three and nine months ended September 30, 2015, respectively.  Income amounts shown for 2015 reflect the April 2015 re-negotiation of one of the Company’s license agreements, that reduced the Company’s minimum royalties under that agreement.  In 2016, future minimum royalty fees are approximately $270,000 under these agreements.

In September 2013, the Company entered into a technology development agreement with Hitachi High-Technologies Corporation (“Hitachi”) that included fixed milestone payments for meeting development milestones under the agreement. Since the milestones were substantive, the Company recognized revenue in the periods in which the substantive milestones were achieved. In addition, the Company received an upfront payment which was 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 $27,780 and $308,340 during the three and nine months ended September 30, 2015, respectively (none in 2016) relating to this arrangement.

In June 2016, the Company entered into a license agreement with Hitachi, pursuant to which it resolved various matters with respect to previously delivered milestones under the technology development agreement and provided a development license and commercial products license to certain technology.  The license agreement contains non-contingent multiple elements (the licenses) that the Company determined did not have stand alone value, and a contingent substantive milestone.  The licenses are treated as a single unit of accounting and the Company will recognize the revenue associated with that unit of accounting over the applicable license period.  During the three and nine months ended September 30, 2016, the Company recognized $6,302 and $131,302 of revenue related to the license agreement.