Quarterly report pursuant to Section 13 or 15(d)

DEFERRED REVENUE

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DEFERRED REVENUE
3 Months Ended
Mar. 31, 2016
Notes to Financial Statements  
Note 6 - DEFERRED REVENUE

In 2014 and 2015, the Company granted license and sub-license agreements for various regions or States in the United States allowing the licensee to market, distribute and sell solely in the defined license territory, as defined, the products provided by the Company. The agreements are granted for a defined period or perpetual and are effective as long as annual milestones are achieved. 

 

Terms for payments for licensee agreements vary from full cash payment to defined terms. In cases where license or sub-license fees are uncollected or deferred; the Company nets those uncollected fees with the deferred revenue for balance sheet presentation. 

 

The Company amortizes license fees over the shorter of the economic life of the related contract life or contract terms for each licensee. The remaining unamortized aggregate balance of deferred revenue as of March 31, 2016 and December 31, 2015 was $1,372,373 and $1,480,286, respectively.