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Note 9 - Commitments and Contingencies
 9 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Commitments and Contingencies Disclosure [Text Block]
Note
9
-
Commitments and
Contingencies
 
Under the
terms of the PCD Agreement, we were required to pay contingent consideration if the cumulative revenues for our process challenge device business for the
three
years subsequent to the acquisition met certain levels. The potential consideration payable ranged from
$0
to
$1,500,000
and was based upon a sliding scale of
three
-year cumulative revenues between
$9,900,000
and
$12,600,000,
with payments made annually. Based upon both historical and projected growth rates, we initially recorded
$300,000
of contingent consideration payable which represented our best estimate of the amount that would ultimately be paid. We paid
$150,000
of the contingent consideration during the year ended
March 31, 2016 (
based upon the then current run rate projected over the entire
three
-year contingent consideration period).
 
Since the initial payment, the revenues
for these products significantly increased and as a result, during the year ended
March 31, 2017
we recorded an additional
$450,000
accrual (which was paid in our
third
quarter ending
December 31, 2016).
During the
three
months ended
June 30, 2017
revenues continued to increase and after revising our forecast for the process challenge device (“PCD”) product revenues through the end of the earn-out period, we recorded an additional
$300,000
accrual, which is included in other income, net in the accompanying condensed consolidated statement of operations for the
nine
months ended
December 31, 2017.
We paid the remaining contingent consideration due of
$450,000
in
November 2017.