The Company generates revenues from product sales and the licensing of the rights to market and commercialize its products. The Company recognizes revenue in accordance with FASB Accounting Standards Codification (ASC) 605, Revenue Recognition . Revenue is recognized when all of the following criteria are met: (1)persuasive evidence of an arrangement exists; (2)title to the product has passed or services have been rendered; (3)price to the buyer is fixed or determinable and (4)collectability is reasonably assured. Product Sales : The Company ships product to its wholesale and retail customers pursuant to purchase agreements or orders.Revenue from sales transactions where the buyer has the right to return the product is recognized at the time of sale only if (1)the sellers price to the buyer is substantially fixed or determinable at the date of sale, (2)the buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product, (3)the buyers obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product, (4)the buyer acquiring the product for resale has economic substance apart from that provided by the seller, (5)the seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer and (6)the amount of future returns can be reasonably estimated. License Revenues : The license agreements the Company enters into normally generate three separate components of revenue: 1) an initial payment due on signing or when certain specific conditions are met; 2) royalties that are earned on an ongoing basisas sales are made or a pre-agreed transfer price and 3) sales-based milestone payments that are earned when cumulative sales reach certain levels. Revenue from the initial payments or licensing fee is recognized when all required conditions are met. Royalties are recognized as earned based on the licensees sales. Revenue from the sale