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13. DEFERRED REVENUE
9 Months Ended
Sep. 30, 2013
Revenue Recognition [Abstract]  
NOTE 13. DEFERRED REVENUE

On September 30, 2013, The Company, was awarded a multi-year contract from Panama Social Security Program (CSS) (“CSS Contract”) to initiate biomass reduction and decontamination services after completed an official pilot study and successfully remediating biological/bacterial colonies.  The Panamanian government accepted the Company’s technology as the only decontamination product that can be bought by Panamanian hospitals for the next two years.  On September 30, 2013, the Company’s Panamanian distribution partner initiated biomass reduction and decontamination services at The Complejo Hospitalario Metropolitano in Panama City, Panama.  The initial project in Panama provides for decontamination services for 64,583 sq/ft. of space for a total value to the Company of approximately $419,790. As of September 30, 2013, the Company billed 30% of the total value of this initial project or $125,937 and earned 10% amounting to $41,979 resulting in a deferred revenue balance of $83,958.  The remaining portion of the biomass reduction project was completed during the month of October 2013.

 

The revenue distribution for the CSS Contract is broken up into two segments: The first segment consists of biomass reduction, a deep cleaning prior to the application of SteraMist and consists of 64,583 sq/ft, at $6.50 per sq/ft which amounts to $419,790. The second segment consists of maintenance services of the same square footage area which has a contract value of $60,000 per month for 3 years. The Company receives 15% of the $60,000 or $9,000 per month as a management fee for the first 12 months and 10% or $6,000 for the remaining 24 months of the contract. As of October 31, 2013, a half of a month of maintenance service has been completed.