Note 6 - DEFERRED REVENUE
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9 Months Ended |
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Sep. 30, 2013
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Notes to Financial Statements | |
Note 6 - DEFERRED REVENUE |
On January 27, 2012, the Company granted licensing rights for five years in the state of Florida for $300,000 payable as the licensee performs procedures. The licensing fees are amortized to income over the term on the license agreement. The remaining unrecognized balance as of September 30, 2013 and December 31, 2012 was $199,586 and $244,438, respectively.
On August 2, 2013, the Company granted licensing rights perpetually for the 48 most northern counties in the state of California for an aggregate of $305,000. The licensing fees are amortized to income over the estimated expected useful life of five years. The remaining unrecognized balance as of September 30, 2013was $391,914.
In addition, the Company received $18,500 in advance licensing fees as of December 31, 2012. |
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- Definition
The entire disclosure for deferred revenues at the end of the reporting period, and description and amounts of significant changes that occurred during the reporting period. Deferred revenue is a liability as of the balance sheet date related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef
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