Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

Commitments and Contingencies
9 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]

Note 4 – Commitments and Contingencies


We had maintained a separate representation and distribution agreement relating to the development of the zinc gluconate product formulation. In return for exclusive 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 in May 2007. However, we and the developer are in litigation and as such no potential offset from such litigation for these fees have been recorded. The amount accrued for this expense at each of September 30, 2012 and December 31, 2011 is $3.5 million.


We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2012, as follows (in thousands):


2012   $ 256  
2013     1,025  
2014     1,025  
2015     555  
2016     -  
2017     -  
Total   $ 2,861