Note 7 - Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions Disclosure [Text Block]

Note 7 – Related Party Transactions

Thomas Meaney, the Company’s president and member of the Company’s board of directors, also serves as a director of Ocean Power Technologies, Inc (“OPT”).  Through the third quarter of 2011, the Company was a subcontractor to OPT under a four-year program to develop and deploy a Vessel Detection System based on the Littoral Expeditionary Autonomous Power Buoy (LEAP) technology.  For the three months ended September 30, 2012 and 2011, the Company recognized revenues of $0 and $6,884 respectively, in connection with the subcontracting agreement with OPT.  For the nine months ended September 30, 2012 and 2011, the Company recognized revenues of $0 and $115,861, respectively.

Under certain SBIR contracts, OPT operates as a subcontractor to the Company.  During the three months ended September 30, 2012 and 2011, the Company incurred subcontractor expenses of $12,731 and $15,001, respectively.  During the nine months ended September 30, 2012 and 2011, the Company incurred subcontractor expenses of $31,588 and $77,508, respectively.