Quarterly report pursuant to Section 13 or 15(d)

Deferred Revenue - Related Party

v3.3.0.814
Deferred Revenue - Related Party
9 Months Ended
Sep. 30, 2015
Deferred Revenue Disclosure [Abstract]  
Deferred Revenue - Related Party

Note 10 - Deferred Revenue – Related Party

 

Deferred revenue represents the unearned revenue from the 3-year exclusive License and Supply Agreement with ChubeWorkx Guernsey Limited (“ChubeWorkx”)(Note 14) for the purchase and distribution of the Company’s proprietary breathalyzer that was signed in June 2012. As of December 31, 2014, 8,120,000 units have been shipped. The license revenue is being recognized monthly on a straight line basis over the 3-year term of the agreement.

 

On May 7, 2015, the Company and ChubeWorkx mutually terminated the exclusive license and supply agreement that granted worldwide distribution rights to ChubeWorkx for the Company’s breathalyzer test. As a result of this action and per the terms of the original agreement, the Company recognized the remaining $166,667 of deferred revenue in the statement of operations for the three months ended June 30, 2015.