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Royalties
6 Months Ended
Jun. 30, 2014
Royalties [Abstract]  
Royalties

7.        Royalties

 

The Company is subject to a royalty agreement based upon sales of certain skin care products. The agreement requires the Company to pay a royalty based upon 8% of such sales, up to $227,175. Royalty expense approximated $13,000 and $21,000 for the three month periods ended June 30, 2014 and 2013, respectively. Royalty expense approximated $27,000 and $35,000 for the six month periods ended June 30, 2014 and 2013, respectively. The remaining commitment at June 30, 2014, is approximately $38,000. The Company’s President has a 60% interest in the royalties and has voluntarily deferred the payment of such royalties until the Company has the financial ability to pay.

 

At June 30, 2014 and December 31, 2013, included in accounts payable and accrued expenses was $115,000 and $88,000, respectively, in regards to this agreement.