Commitments and Contingencies |
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Dec. 31, 2015 | |||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||
| Commitments and Contingencies Disclosure [Text Block] |
Note 13 — Commitments and Contingencies
Lease
The Company has entered into a lease for 14,782 square feet of office and laboratory space located in Austin, Texas. The triple net lease has a term of 48 months and commenced on June 1, 2014. The annual base rent in the first year of the lease was $154,324 and increases by $3,548 in each succeeding year of the lease. In addition, the Company is required to pay its proportionate share of operating costs for the building. The Company has a one-time option to terminate the lease on May 31, 2017 with a termination payment of approximately $99,000 if it elects to exercise this option.
At December 31, 2015, the remaining annual base rent commitments under the lease, assuming no early termination, are as follows:
Rent expense incurred for the years ended December 31, 2015 and 2014 amounted to $212,397 and $137,559, respectively.
License Agreement
On July 24, 2015 and December 21, 2015, the Company entered into licensing agreements which expire on February 7, 2033. Per the agreements, the Company has the exclusive royalty-free license which enhances its intellectual property portfolio related to semiconductor power switches. The agreements include both fixed and variable payments. The Company capitalized the $211,394 of fixed payments as an intangible asset and will amortize the asset over the life of the licensing agreements. The variable payments are a function of the number of associated patent filings pending and patents issued under the agreements. The Company will pay $10,000 for each patent filing pending and $20,000 for each patent issued within 20 days of December 21, 2017 and each subsequent year of the agreement, up to a maximum of $100,000 per year (i.e. five issued patents). At December 31, 2015, no patents associated with the agreements had been issued.
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