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Thin Film Japan Distribution Agreement | 12 Months Ended
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Dec. 31, 2012
Thin Film Japan Distribution Agreement [Abstract] |
Thin Film Japan Distribution Agreement | 6. Thin Film Japan Distribution Agreement The Company has entered into a Distribution Agreement with Senko. Under this agreement, we granted to Senko an exclusive license to sell and distribute certain Thin Film products in Japan and are responsible for the completion of the initial regulatory application to the MHLW and commercialization of the Thin Film product line in Japan. The Distribution Agreement with Senko commences upon "commercialization." Essentially, commercialization occurs when one or more Thin Film product registrations are completed with the MHLW. As of December 31, 2012 commercialization has not yet occurred. At the inception of this arrangement, we received a $1,500,000 license fee which was recorded as deferred revenues in 2004. Half of the license fee is refundable if the parties agree commercialization is not achievable and a proportional amount is refundable if we terminate the arrangement, other than for material breach by Senko, before three years post-commercialization. We have also received $1,250,000 in milestone payments from Senko. We recognized no development revenue during the years ended December 31, 2012, 2011 and 2010 under this agreement Refer to note 16 for a discussion of subsequent event relating to our agreement with Senko.

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