NOVADEL PHARMA INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS—(Continued)
The assumptions used in the June 30, 2010 fair value measurement are as follows:
|
|
|
|
|
|
|
|
Series A
Warrants
|
|
Series B
Warrants |
|
Discount Rate
|
|
|
|
2.00 |
% |
|
|
|
|
2.00 |
% |
|
|
Volatility
|
|
|
|
113 |
% |
|
|
|
|
113 |
% |
|
|
Expected Term
|
|
|
|
4.75 years |
|
|
|
|
0.25 years |
|
|
Dividend Yield
|
|
|
|
0 |
% |
|
|
|
|
0 |
% |
|
The assumptions used in the March 31, 2010 fair value measurement are as follows:
|
|
|
|
|
|
|
|
Series A
Warrants
|
|
Series B
Warrants |
|
Discount Rate
|
|
|
|
2.00 |
% |
|
|
|
|
2.00 |
% |
|
|
Volatility
|
|
|
|
140 |
% |
|
|
|
|
131 |
% |
|
|
Expected Term
|
|
|
|
5 years |
|
|
|
|
0.5 years |
|
|
Dividend Yield
|
|
|
|
0 |
% |
|
|
|
|
0 |
% |
|
Note 6–Deferred Revenue from Licensing Agreements
As of September 30, 2010, the Company has the following deferred revenue from licensing agreements:
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|
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|
|
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Total
|
|
Current |
|
Non Current |
|
ECR Pharmaceuticals Company, Inc.
|
|
|
$ |
|
3,000,000 |
|
|
|
$ |
|
3,000,000 |
|
|
|
$ |
|
— |
|
|
Mist Acquisition, LLC
|
|
|
|
1,000,000 |
|
|
|
|
1,000,000 |
|
|
|
|
— |
|
|
BioAlliance
|
|
|
|
2,635,000 |
|
|
|
|
154,000 |
|
|
|
|
2,481,000 |
|
|
Velcera
|
|
|
|
1,048,000 |
|
|
|
|
75,000 |
|
|
|
|
973,000 |
|
|
Other
|
|
|
|
586,000 |
|
|
|
|
37,000 |
|
|
|
|
549,000 |
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$ |
|
8,269,000 |
|
|
|
$ |
|
4,266,000 |
|
|
|
$ |
|
4,003,000 |
|
|
|
|
|
|
|
|
|
ECR Pharmaceuticals Company, Inc.—In November 2009, we entered into an exclusive license and distribution agreement with ECR Pharmaceuticals Company, Inc. to commercialize and manufacture Zolpimist in the United States and Canada. Under the terms of the agreement, we received a
$3,000,000 licensing fee from ECR upon execution of the agreement. We anticipate the licensing fee will be recognized in full in the current calendar year.
Mist Acquisition, LLC—In October 2009, we entered into a license and distribution agreement with Mist Acquisition, LLC to manufacture and commercialize NitroMist, our lingual spray version of nitroglycerine, in the United States, Canada and Mexico. Under terms of the agreement, Mist paid us a
$1,000,000 licensing fee upon execution of the agreement. We anticipate the licensing fee will be recognized in full in the current calendar year.
BioAlliance—In May 2008, the Company and BioAlliance Pharma SA entered into an agreement where BioAlliance acquired the European rights for Zensana. Under the terms of the agreement, BioAlliance paid NovaDel a license fee of $3,000,000 upon closing and this fee is being recognized in
income over the nineteen and one half-years term of the agreement.
Velcera—In June 2004, the Company entered into a 20-year worldwide exclusive license agreement with Velcera, a veterinary company. The license agreement is for the exclusive rights to the Company’s propriety oral spray technology in animals. In September 2004, the Company received $1,500,000
from Velcera as an upfront payment in connection with the commercialization agreement. The upfront payment has been included in deferred revenue and is being recognized in income over the 20-year term of the agreement.
F-36
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