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Commitments
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6 Months Ended |
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Jun. 30, 2014
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| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments |
NOTE 15 – COMMITMENTS
Patent payable
As part of the formation of the Company, a patent license was transferred to the Company. The original license began in 2006. Under the terms of the license the Company agreed to pay $10,000 per year through 2015 and royalties of 2% on any revenues resulting from the license. There were no revenues generated by this license during the six-month periods ended June 30, 2014 and 2013. The remaining obligation of $10,000 and $20,000 as of June 30, 2014 and December 31, 2013, respectively, is recorded as patent license payable on the balance sheet.
Employee settlement
As of June 30, 2014 and December 31, 2013, the Company owed a former employee a settlement payable in the amount of $50,000 for accrued vacation benefits. As part of the settlement, a stock option previously granted to the former employee was fully vested and extended.
License and agreements
In November 2006, the Company entered into a joint development and supply agreement with the supplier of all of its inventory. Under the agreement, the Company granted the supplier an exclusive world-wide license to use the Company’s rights related to the development and commercialization of human nutraceutical astaxanthin products. The Company is to receive specified royalties based on future net sales of such human nutraceutical astaxanthin products. No royalties were realized from this agreement during the six-month periods ended June 30, 2014 and 2013. |