| Related Party Transactions Disclosure [Text Block] |
NOTE D - RELATED PARTY
TRANSACTIONS
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1)
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The Company has a license agreement with
IBP and earned royalties of approximately $12,000 and
$7,000 during the three months ended September 30, 2011
and 2010, respectively. A shareholder of the Company is
an officer of IBP.
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2)
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During the three months ended September
30, 2011, the Company had three services arrangements
with the Center for Molecular Biotechnology of
Fraunhofer USA, Inc. (“FhCMB”) for research
and development.
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(A)
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In 2003, the Company entered into a
Technology Transfer Agreement., as amended
(“TTA”) which requires FhCMB to provide the
Company with research and development services related
to the commercialization of the Technology and allows
FhCMB to apply the Technology to the development and
production of certain vaccines for use in developing
countries as defined in the agreement. The most recent
amendment to the TTA requires: 1) the Company to make
payments to FhCMB of $2,000,000 per year for five
years, aggregating $10,000,000, for such services
beginning in November 2009; and 2) FhCMB to expend at
least equal amounts during the same timeframe for
research and development services related to the
commercialization of the Technology. Additionally,
under the terms of the TTA and for a period of fifteen
years: 1) the Company shall pay FhCMB a defined percent
(per the agreement) of all receipts derived by the
Company from sales of products produced utilizing the
Technology and a defined percentage (per the agreement)
of all receipts derived by the Company from licensing
the Technology to third parties with an overall minimum
annual payment of $200,000 beginning with the twelve
months ended December 2010; and 2) FhCMB shall pay the
Company a defined percentage (per the agreement) of all
receipts from sales, licensing, or commercialization of
the Technology in developing countries as defined in
the agreement.
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(B)
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In December 2010, the Company and FhCMB
entered into a $1,660,000 research services agreement for
research for selected targeted gene expressions
optimization utilizing the Company’s
technology.
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(C)
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In March 2011, the Company and FhCMB
entered into a $432,000 research services agreement for
research regarding the use of a certain enzyme as a
carrier molecule.
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Below are expenses recorded with transactions
associated with FhCMB for the three months ended September
30, 2011 and 2010 and as of September 30, 2011 and June 30,
2011, respectively.
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Three Months Ended
September 30,
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2011
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2010
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Research and development expense
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$
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1,372,000
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$
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0
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Royalty
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50,000
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50,000
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As of September
30, 2011
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As of June
30, 2011
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Prepaid and other current assets
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$
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443,000
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$
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760,000
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Accounts payable
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2,181,000
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2,360,000
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