Licensing Agreements for Medical Technology

12 Months Ended

Jun. 30, 2013

Licensing Agreements For Medical Technology [Abstract]

Licensing Agreements For Medical Technology [Text Block]

11. Licensing Agreements for Medical Technology

In October 1996, the Company entered into a License Agreement (the "USS License") with United States Surgical (now, Covidien) for a twenty-year period, covering the further development and commercial exploitation of the Company's medical technology relating to ultrasonic cutting, which uses high frequency sound waves to coagulate and divide tissue for both open and laparoscopic surgery.

The USS License gives Covidien exclusive worldwide marketing and sales rights for this technology. Under the USS License, the Company has received $475,000 in licensing fees (which are being recorded as income over the term of the USS License), plus royalties based upon net sales of such products. Total royalties from sales of this device were approximately $2,369,000 and $488,000 for the fiscal years ended June 30, 2013 and 2012, respectively.