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Forgiveness Of Debt Accrual Reversal And Other Income
12 Months Ended
Dec. 31, 2011
Forgiveness Of Debt Accrual Reversal And Other Income [Abstract]  
Forgiveness of debt, Accrual Reversal and Other Income

7. Forgiveness of debt, Accrual Reversal and Other Income

Forgiveness of debt totaling $476,837 was recognized for the year ended December 31, 2011 as compared to $0 for the year ended December 31, 2010. In July 2011, John Preston, Henry Brem, Gary Frashier and Robert Langer signed settlement agreements to resolve unpaid fees due to them for services rendered during the period of July 2008 through January 2010. As of the settlement date a total of $358,500 had been accrued for director and consulting fees. Per the agreements, each former board member was issued one share of stock for each dollar owed. The Company stock closed at $.08 per share on the effective date of the agreements. As a result of these transactions $327,570 was recognized as forgiveness of debt.

In July 2011, Michael Mullen and William Guinness our current board members, signed settlement agreements to resolve unpaid fees due to them for services rendered during the period of July 2008 through January 31, 2010. As of the settlement date approximately $172,000 had been accrued for directors fees owed to the two board members who agreed to a reduced payment totaling $22,400. As a result of these transactions approximately $149,000 was recognized as forgiveness of debt.

An accrual reversal of $561,195 was recorded for the year ended December 31, 2011. The reversal related to a potential dispute with a contract manufacturer that had been accrued for in 2009 as a research and development expense.

Other income of $43,814 was primarily attributable to the issuance to the Company of 39,209 restricted shares of FluoroPharma Medical, Inc. common stock with a closing price of $1.88 on September 30, 2011. Although the shares were restricted under Rule 144 and had very light trading volume, they were trading on a public exchange and could no longer be accounted for under the cost method. Taking into consideration the shares trading restrictions and light trading volume, the shares were recorded in the Condensed Consolidated Balance Sheet as of September 30, 2011 at a 20% discount or $1.50 per share. The change in method for valuing these shares form the cost method to the fair value method resulted in the recognition of a gain of $58,814. This transaction is described in greater detail in Note 2 of these Consolidated Financial Statements.