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2. Accounts Receivable
12 Months Ended
Dec. 31, 2013
Notes to Financial Statements  
Note 2 - Accounts Receivable

At December 31, 2012 and 2013, the carrying value of the Company’s accounts receivable has been reduced to anticipated realizable value. As a result of this reduction of carrying value, the Company anticipates that substantially all of its net receivables reflected on the Consolidated Balance Sheets as of December 31, 2012 and 2013 will be collected. The allowance to reduce the receivables to anticipated net realizable value at December 31, 2013 was $263,000.

 

In 2012, the Company dismissed its counterclaims against certain plaintiffs in the lawsuit related to the operations discontinued in 2008 and reduced the net realizable value by $500,000 related to the Company’s counterclaims against the plaintiffs in the lawsuit referenced above. In 2013, based on a judgment that was entered on February 13, 2014 in the lawsuit discussed above, the Company reduced the carrying value of the receivables subject to the counterlaims by $1.1 million. Since the right to receive passive income in the form of royalties is not a part of the discontinued operations, the adjustments to reflect these two charges was made to continuing operations.