|9 Months Ended|
Sep. 30, 2016
|Equity Method Investments and Joint Ventures [Abstract]|
Note 6 Joint Venture
On March 22, 2010, we, Phosphagenics Limited (PSI Parent), an Australian corporation, Phosphagenics Inc. (PSI), a Delaware corporation and subsidiary of PSI Parent, and Phusion Laboratories, LLC (Phusion), a Delaware limited liability company, entered into a Limited Liability Company Agreement (the LLC Agreement) of Phusion and additional related agreements for the purpose of developing and commercializing, for worldwide distribution and sale, a wide range of non-prescription remedies using PSI Parents proprietary patented TPM technology (TPM). TPM facilitates the delivery and depth of penetration of active molecules in pharmaceutical, nutraceutical, and other products. Pursuant to the LLC Agreement, we and PSI each own a 50% membership interest in the Phusion joint venture. Phusion qualifies as a variable interest entity and we have consolidated Phusion in our financial statements.
In connection with the LLC Agreement, PSI Parent granted to us, pursuant to the terms of a License Agreement, dated March 22, 2010 (the Original License Agreement), (i) an exclusive, royalty-free, world-wide (subject to certain limitations), paid-up license to exploit OTC drugs and certain other products that embody certain of PSI Parents TPM-related patents and related know-how (collectively, the PSI Technology) and (ii) a non-exclusive, royalty-free, world-wide (subject to certain limitations), paid-up license to exploit certain compounds that embody the PSI Technology for use in a product combining one or more of such compounds with an OTC drug or in a product that is part of a regimen that includes the application of an OTC drug.
On October 17, 2014, we initiated a demand for arbitration with the American Arbitration Association, case number 01-14-0001-7373. The Phosphagenics Entities (defined below) have made counter claims of breaches against the Company and Phusion (see Note 7). At September 30, 2016, cash and cash equivalents includes $166,000 which is available to be used by Phusion to fund future product development initiatives.
The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group.
Reference 1: http://www.xbrl.org/2003/role/presentationRef