ARGN » Topics » Research and Development Expenses

These excerpts taken from the ARGN 10-K filed Feb 13, 2009.

Research and Development Expenses

 

Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development.

 

The Company has Joint Development Agreements with Visteon Corporation (“Visteon”) and United Technologies Corporation and other third parties. These agreements provide for the joint development of certain TED based products for specific markets whereby the Company is reimbursed for certain development costs on an as incurred basis. The agreements do not provide for specific amounts of reimbursement. Under the terms of the agreements each of the parties retains ownership rights to certain intellectual property developed in the course of the development agreement but grants the other a non-exclusive, royalty free license to that technology subject to certain limitations. The agreements also create a four year exclusive supply arrangement where certain product components would be supplied by the Company.

 

On June 29, 2007, the Company amended its exclusive development agreement with Visteon related to certain proprietary TED technology for automotive applications, permitting the Company to undertake further development with a limited number of additional development partners. Under the terms of the amendment, BSST acquired Visteon’s Thermoelectric-based HVAC systems technology and is now permitted to seek additional partners in Asia and Europe. The cost of the acquisition of these Visteon patents was $1,500 and has been capitalized as Patent Costs on the Consolidated Balance Sheet as of December 31, 2008 and 2008 less accumulated amortization. BSST is now working to select additional development partners to expand the market for Theremoelectric-based HVAC systems in the automotive market.

 

During 2004, the Company received a Financial Assistance Award from the U.S. Department of Energy (“DOE”). Under the terms of the award, the DOE is expected to reimburse the Company for 75% of certain development costs over the course of a four phase project on an as incurred basis. As of December 31, 2008, we have received a total of $4,900 in program funding from the DOE since the program began in 2005. Additional reimbursements are expected as the program continues. The reimbursement and progress of the program is subject to certain budget restraints of the U.S. Federal Government (“US Government”). The terms of the award provide for the Company to retain ownership of intellectual property developed during the course of the program. The agreement also grants the US Government a non-exclusive, nontransferable, irrevocable, paid-up license to that intellectual property.

 

The Company recognizes amounts due as reimbursements for expenses as these expenses are incurred.

 

Research and Development Expenses

STYLE="margin-top:0px;margin-bottom:-6px"> 

Research and development activities are expensed as incurred. The Company
groups development and prototype costs and related reimbursements in research and development.

 

FACE="Times New Roman" SIZE="2">The Company has Joint Development Agreements with Visteon Corporation (“Visteon”) and United Technologies Corporation and other third parties. These agreements provide for the joint development of certain
TED based products for specific markets whereby the Company is reimbursed for certain development costs on an as incurred basis. The agreements do not provide for specific amounts of reimbursement. Under the terms of the agreements each of the
parties retains ownership rights to certain intellectual property developed in the course of the development agreement but grants the other a non-exclusive, royalty free license to that technology subject to certain limitations. The agreements also
create a four year exclusive supply arrangement where certain product components would be supplied by the Company.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">On June 29, 2007, the Company amended its exclusive development agreement with Visteon related to certain proprietary TED technology for automotive
applications, permitting the Company to undertake further development with a limited number of additional development partners. Under the terms of the amendment, BSST acquired Visteon’s Thermoelectric-based HVAC systems technology and is now
permitted to seek additional partners in Asia and Europe. The cost of the acquisition of these Visteon patents was $1,500 and has been capitalized as Patent Costs on the Consolidated Balance Sheet as of December 31, 2008 and 2008 less
accumulated amortization. BSST is now working to select additional development partners to expand the market for Theremoelectric-based HVAC systems in the automotive market.

SIZE="1"> 

During 2004, the Company received a Financial Assistance Award from the U.S. Department of Energy (“DOE”). Under
the terms of the award, the DOE is expected to reimburse the Company for 75% of certain development costs over the course of a four phase project on an as incurred basis. As of December 31, 2008, we have received a total of $4,900 in program
funding from the DOE since the program began in 2005. Additional reimbursements are expected as the program continues. The reimbursement and progress of the program is subject to certain budget restraints of the U.S. Federal Government (“US
Government”). The terms of the award provide for the Company to retain ownership of intellectual property developed during the course of the program. The agreement also grants the US Government a non-exclusive, nontransferable, irrevocable,
paid-up license to that intellectual property.

 

The Company
recognizes amounts due as reimbursements for expenses as these expenses are incurred.

 

SIZE="2">Income Taxes

 

Income taxes are determined
under guidelines prescribed by SFAS No. 109, “Accounting for Income Taxes” (“SFAS 109”). Under the liability method specified by SFAS 109, deferred tax assets and liabilities are measured each year based on the difference
between the financial statement and tax bases of assets and liabilities at the applicable enacted Federal and State tax rates. A valuation allowance is provided for net deferred tax assets

 


F-9







Table of Contents



AMERIGON INCORPORATED

SIZE="1"> 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIZE="1"> 

(In thousands, except share and per share data)



Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued)


 



when management considers it more likely than not that the asset will not be realized. As required by Financial Accounting Standards Board (“FASB”)
Interpretation 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”), which clarifies SFAS 109, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority
would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood
of being realized upon ultimate settlement with the relevant tax authority. We recognize interest and penalties related to income tax matters in income tax expense.

SIZE="1"> 

These excerpts taken from the ARGN 10-K filed Feb 14, 2008.

Research and Development Expenses

 

Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development.

 

The Company has Joint Development Agreements with Visteon Corporation (“Visteon”) and United Technologies Corporation and other third parties. These agreements provide for the joint development of certain TED based products for specific markets whereby the Company is reimbursed for certain development costs on an as incurred basis. The agreements do not provide for specific amounts of reimbursement. Under the terms of the agreements each of the parties retains ownership rights to certain intellectual property developed in the course of the development agreement but grants the other a non-exclusive, royalty free license to that technology subject to certain limitations. The agreements also create a four year exclusive supply arrangement where certain product components would be supplied by the Company.

 

On June 29, 2007, the Company amended its exclusive development agreement with Visteon related to certain proprietary TED technology for automotive applications, permitting the Company to undertake further development with a limited number of additional development partners. Under the terms of the amendment, BSST acquired Visteon’s Thermoelectric-based HVAC systems technology and is now permitted to seek additional partners in Asia and Europe. The cost of the acquisition of these Visteon patents was $1,500,000 and has been capitalized as Patent Costs on the Consolidated Balance Sheet as of December 31, 2007. BSST is now working to select additional development partners to expand the market for Theremoelectric-based HVAC systems in the automotive market.

 

During 2004, the Company received a Financial Assistance Award from the U.S. Department of Energy (“DOE”). Under the terms of the award, the DOE is expected to reimburse the Company for 75% of certain development costs over the course of a four phase project on an as incurred basis. The budget for all phases of the program is $6,294 of which $4,720 is expected to be reimbursed. The reimbursement and progress of the program is subject to certain budget restraints of the U.S. Federal Government (“US Government”). The terms of the award provide for the Company to retain ownership of intellectual property developed during the course of the program. The agreement also grants the US Government a non-exclusive, nontransferable, irrevocable, paid-up license to that intellectual property.

 

The Company recognizes amounts due as reimbursements for expenses as these expenses are incurred.

 

F-9


Table of Contents

AMERIGON INCORPORATED

 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

 

(In thousands, except share and per share data)

Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued)

 

Research and Development Expenses

STYLE="margin-top:0px;margin-bottom:-6px"> 

Research and development activities are expensed as incurred. The Company
groups development and prototype costs and related reimbursements in research and development.

 

FACE="Times New Roman" SIZE="2">The Company has Joint Development Agreements with Visteon Corporation (“Visteon”) and United Technologies Corporation and other third parties. These agreements provide for the joint development of certain
TED based products for specific markets whereby the Company is reimbursed for certain development costs on an as incurred basis. The agreements do not provide for specific amounts of reimbursement. Under the terms of the agreements each of the
parties retains ownership rights to certain intellectual property developed in the course of the development agreement but grants the other a non-exclusive, royalty free license to that technology subject to certain limitations. The agreements also
create a four year exclusive supply arrangement where certain product components would be supplied by the Company.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">On June 29, 2007, the Company amended its exclusive development agreement with Visteon related to certain proprietary TED technology for automotive
applications, permitting the Company to undertake further development with a limited number of additional development partners. Under the terms of the amendment, BSST acquired Visteon’s Thermoelectric-based HVAC systems technology and is now
permitted to seek additional partners in Asia and Europe. The cost of the acquisition of these Visteon patents was $1,500,000 and has been capitalized as Patent Costs on the Consolidated Balance Sheet as of December 31, 2007. BSST is now
working to select additional development partners to expand the market for Theremoelectric-based HVAC systems in the automotive market.

 

STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">During 2004, the Company received a Financial Assistance Award from the U.S. Department of Energy (“DOE”). Under the terms of the award, the DOE
is expected to reimburse the Company for 75% of certain development costs over the course of a four phase project on an as incurred basis. The budget for all phases of the program is $6,294 of which $4,720 is expected to be reimbursed. The
reimbursement and progress of the program is subject to certain budget restraints of the U.S. Federal Government (“US Government”). The terms of the award provide for the Company to retain ownership of intellectual property developed
during the course of the program. The agreement also grants the US Government a non-exclusive, nontransferable, irrevocable, paid-up license to that intellectual property.

 

The Company recognizes amounts due as reimbursements for expenses as these expenses are incurred.

STYLE="margin-top:0px;margin-bottom:0px"> 


F-9







Table of Contents



AMERIGON INCORPORATED

SIZE="1"> 

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIZE="1"> 

(In thousands, except share and per share data)



Note 2 — Summary of Significant Accounting Policies and Basis of Presentation (Continued)


 


This excerpt taken from the ARGN 10-K filed Feb 20, 2007.

Research and Development Expenses

 

Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development.

 

The Company has Joint Development Agreements with Visteon and United Technologies Corporation and other third parties. These agreements provide for the joint development of certain TED based products for specific markets whereby the Company is reimbursed for certain development costs on an as incurred basis. The agreements do not provide for specific amounts of reimbursement. Under the terms of the agreements each of the parties retains ownership rights to certain intellectual property developed in the course of the development agreement but grants the other a non-exclusive, royalty free license to that technology subject to certain limitations. The agreements also create a four year exclusive supply arrangement where certain product components would be supplied by the Company.

 

During 2004, the Company received a Financial Assistance Award from the U.S. Department of Energy (“DOE”). Under the terms of the award, the DOE is expected to reimburse the Company for 75% of certain development costs over the course of a four phase project on an as incurred basis. The budget for all phases of the program is $6,294 of which $4,720 is expected to be reimbursed. The reimbursement and progress of the program is subject to certain budget restraints of the U.S. Federal Government (“US Government”). The terms of the award provide for the Company to retain ownership of intellectual property developed during the course of the program. The agreement also grants the US Government a non-exclusive, nontransferable, irrevocable, paid-up license to that intellectual property.

 

The Company recognizes amounts due as reimbursements for expenses as these expenses are incurred.

 

This excerpt taken from the ARGN 10-K filed Mar 14, 2006.

Research and Development Expenses

 

Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development.

 

The Company has joint Development Agreements with Visteon and United Technologies Corporation. These agreements provide for the joint development of certain TED based products for specific markets whereby the Company is reimbursed for certain development costs. The agreements do not provide for specific amounts of reimbursement. Under the terms of the agreements each of the parties retains ownership rights to certain intellectual property developed in the course of the development agreement but grants the other a non-exclusive, royalty free license to that technology subject to certain limitations. The agreements also create a four year exclusive supply arrangement where certain product components would be supplied by the Company.

 

During 2004, the Company received a Financial Assistance Award from the U.S. Department of Energy (“DOE”). Under the terms of the award, the DOE is expected to reimburse the Company for 75% of certain development costs over the course of a four phase project. The budget for all phases of the program is $6,294 of which $4,720 is expected to be reimbursed. The reimbursement and progress of the program is subject to certain budget restraints of the U.S. Federal Government (“US Government”). The terms of the award provide for the Company to retain ownership of intellectual property developed during the course of the program. The agreement also grants the US Government a non-exclusive, nontransferable, irrevocable, paid-up license to that intellectual property.

 

This excerpt taken from the ARGN 10-K filed Mar 24, 2005.

Research and Development Expenses

 

Research and development activities are expensed as incurred. The Company groups development and prototype costs and related reimbursements in research and development. Development and prototype costs for 2004, 2003 and 2002 were:

 

     Year ended December 31,

     2004

    2003

    2002

Research, development and prototype costs

   $ 3,882     $ 3,634     $ 3,910

Reimbursed research, development and prototype costs

     (1,656 )     (1,147 )    
    


 


 

Net research, development and prototype costs

   $ 2,226     $ 2,487     $ 3,910
    


 


 

 

"Research and Development Expenses" elsewhere:

DELPHAX TECHNOLOGIES INC (DLPX)
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