Business Segmentation And Geographical Distribution

3 Months Ended

Mar. 31, 2012

Business Segmentation And Geographical Distribution [Abstract]

Business Segmentation And Geographical Distribution

(9) Business Segmentation and Geographical Distribution

Revenue from international sources approximated $94,000 and $77,000 for the three months ended March 31, 2012 and 2011, respectively. As part of its revenue from international sources, the Company recognized approximately $19,000 in product revenue from international companies and $75,000 in other revenue from a technology license fee from its Japanese licensee for the three months ended March 31, 2012. Revenue from these same international sources approximated $1,300 and $75,000 for the same period in 2011. The Company entered into multiple agreements with this Japanese licensee during 2012. During January 2012, the Company and the Japanese licensee entered into a mutual cooperation agreement, which confirmed their intent to allow their existing agreements to terminate, in accordance with their terms, as of March 31, 2013. The parties also agreed that, as of April 1, 2013, the territorial restrictions and royalty payments set forth in the existing agreements would no longer be in effect. On March 31, 2012, the Company assigned the Japanese trademark for "NanoTek" to the Japanese licensee in exchange for $5,000. In addition, the Japanese licensee agreed to pay the Company $279,000 by the end of April 2012 as prepayment for the final minimum royalty of $300,000, due under the existing terms in April 2013, which represents a 7% discount for early payment. The Company has recorded the royalty advance as deferred revenue on March 31, 2012, and will recognize it ratably over the contract term.

The Company's operations comprise a single business segment and all of the Company's long-lived assets are located within the United States.