Annual report pursuant to Section 13 and 15(d)

PATENT RIGHTS AND RELATED ROYALTY COMMITMENTS

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PATENT RIGHTS AND RELATED ROYALTY COMMITMENTS
12 Months Ended
Dec. 31, 2011
Patent Rights and Related Royalty Commitments [Abstract]  
Patent Rights and Related Royalty Commitments [Text Block]

NOTE 5 – PATENT RIGHTS AND RELATED ROYALTY COMMITMENTS

 

We have maintained a separate representation and distribution agreement relating to the development of the zinc gluconate product formulation. In return for exclusive worldwide distribution rights, we agreed to pay the developer a 3% royalty and a 2% consulting fee based on sales collected, less certain deductions, throughout the term of this agreement, which expired May 2007. However, we and the developer are in litigation (see Note 7) and as such no potential offset for these fees from such litigation has been recorded. The amount accrued for this expense at each of December 31, 2011 and 2010 was $3.5 million.