XML 32 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE 8 Sale of Product Line Assets
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Sale of Product Line Assets

NOTE 8 — Sale of Product Line Assets

 

On September 30, 2009, the Company entered into an asset purchase agreement pursuant to which the Company sold its serial product line to Quatech, Inc., a wholly owned subsidiary of DPAC Technologies Corp. The Company recognized $450,000 as a gain on sale of product line assets for the quarter ended September 30, 2009. The Company used the proceeds from the transaction for working capital purposes.

 

In connection with the sale of the serial products business, the Company and Quatech also entered into a supply and licensing agreement pursuant to which the Company (i) supplies Quatech with its proprietary HIS3 interface chip used in the serial products, (ii) licensed its Bluetooth software to Quatech for use in the Cordless Serial Adapter, and (iii) supply a limited quantity of the Cordless Serial Adapter product as held in the Company's inventory at the time of the sale. The term of the agreement is ten years, after which the agreement will renew for additional one year terms unless either party gives notice not to renew as specified under the terms of the agreement.