Note 12 - Related Party Transactions

On June 19, 2012, the Company entered into a 3 year exclusive License & Supply Agreement with Chubeworkx Guernsey Limited (as successor to SONO International Limited) (“Chubeworkx”) for the purchase and distribution of ABI’s proprietary breathalyzers outside North America. Chubeworkx paid a licensing fee of $1,000,000 which was recognized over the term of the agreement through June 30, 2015.

On June 13, 2013, the Company announced an expansion of the License and Supply Agreement with Chubeworkx to include worldwide marketing and distribution of the “Be CHUBE” program using the Company’s breathalyzer.

On February 12, 2016, the Company purchased several manufacturing molds through Hainan Savy – Akers Biosciences, Ltd., our joint venture partner in the Peoples Republic of China. The total cost of the molds and sample components during the three months ended March 31, 2016 was $42,093. The cost of the sample components, totaling $1,020, was included in research and development expenses in the condensed consolidated statement of operations and comprehensive income. The cost of the molds, totaling $41,073, is included in property, plant and equipment in the condensed consolidated balance sheet. 

Trade receivables – related party as of March 31, 2016 and December 31, 2015 are $31,522 and $31,512. The amounts due is non-interest bearing, unsecured and generally have a term of 30 to 90 (Note 4). This receivable is past due and management deemed it fully collectable.

Product revenue – related party for the three months ended March 31, 2016 and 2015 were $- and $14,343. The revenue was the result of sales to Hainan Savy Akers Biosciences, a joint venture partner.