KEY ACCOUNTING POLICY - REVENUE RECOGNITION - Note 3	6 Months Ended
Jun. 30, 2013
Risks and Uncertainties [Abstract]
KEY ACCOUNTING POLICY - REVENUE RECOGNITION - Note 3	3. KEY ACCOUNTING POLICY - REVENUE RECOGNITION We evaluate the performance criteria and terms of our collaborative research and development agreements to determine whether revenue should be recognized under a performance-based method or milestone method. Significant items included in our evaluation are the following: the nature of our obligation under the agreement, whether provisions leading to variable revenues exist whether any payments are required to be repaid, whether the deliverables should be treated as one unit of accounting or separated into multiple units, whether substantive milestones exist, whether milestone payments are commensurate with either our level of effort or the increase in value of the customer's rights, and whether a licensing agreement exists. In March 2013, we entered into and began work under a $4.6 million collaborative research and development agreement with a customer researching and developing commercial applications for our technology. Our contributions under the collaborative agreement include research services, components, and prototype devices and fixtures. Development revenues to be realized are subject to successful completion of the deliverables as defined in the collaborative research and development agreement. Based on the terms of this agreement, we recognize development revenue as work progresses on the agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement or the cash payments received plus outstanding billings for work accepted by the customer. Since our collaborative agreements generally require some level of technology development, the actual costs required to complete a contract can vary from our estimates. The proportional revenue recognition method we use for collaborative research and development agreements includes adjustments for revisions to estimated total agreement costs. Each period, we evaluate total estimated costs for each agreement and include any significant revisions in the period we become aware of changes in estimated total costs. The costs for work performed under collaborative research and development agreements are expensed in the periods incurred and included in the Statement of Operations in research and development expense. For the three and six months ended June 30, 2013, two commercial customers accounted for approximately 93% and 89% of our total revenue. The accounts receivable balance from these customers was approximately 98% of our net accounts receivable balance at June 30, 2013.

KEY ACCOUNTING POLICY - REVENUE RECOGNITION - Note 3

6 Months Ended

Jun. 30, 2013

KEY ACCOUNTING POLICY - REVENUE RECOGNITION - Note 3

3. KEY ACCOUNTING POLICY - REVENUE RECOGNITION

We evaluate the performance criteria and terms of our collaborative research and development agreements to determine whether revenue should be recognized under a performance-based method or milestone method. Significant items included in our evaluation are the following:

the nature of our obligation under the agreement,
whether provisions leading to variable revenues exist
whether any payments are required to be repaid,
whether the deliverables should be treated as one unit of accounting or separated into multiple units,
whether substantive milestones exist,
whether milestone payments are commensurate with either our level of effort or the increase in value of the customer's rights, and
whether a licensing agreement exists.

In March 2013, we entered into and began work under a $4.6 million collaborative research and development agreement with a customer researching and developing commercial applications for our technology. Our contributions under the collaborative agreement include research services, components, and prototype devices and fixtures. Development revenues to be realized are subject to successful completion of the deliverables as defined in the collaborative research and development agreement.

Based on the terms of this agreement, we recognize development revenue as work progresses on the agreement and as our customer accepts the deliverables using a proportional method based on the lesser of the cumulative proportion of total planned costs to be incurred under the agreement or the cash payments received plus outstanding billings for work accepted by the customer. Since our collaborative agreements generally require some level of technology development, the actual costs required to complete a contract can vary from our estimates. The proportional revenue recognition method we use for collaborative research and development agreements includes adjustments for revisions to estimated total agreement costs. Each period, we evaluate total estimated costs for each agreement and include any significant revisions in the period we become aware of changes in estimated total costs. The costs for work performed under collaborative research and development agreements are expensed in the periods incurred and included in the Statement of Operations in research and development expense.

For the three and six months ended June 30, 2013, two commercial customers accounted for approximately 93% and 89% of our total revenue. The accounts receivable balance from these customers was approximately 98% of our net accounts receivable balance at June 30, 2013.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

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