2012 Annual Report - Prometic - Life Science, Inc.

The total rental expenses for the year ended December 31, 2012 amounted to $1,835 ($2,243 as at December 31, 2011).
a) In April 2006, the Company paid the American Red Cross an amount of US$1,000,000 for an exclusive license for access to and use of
intellectual property rights for the Plasma Protein Purification System (“PPPS”) project. ProMetic will collect revenues derived from any
licensing activities, such as royalties on net sales, lump sum amounts and/or milestone payments. ProMetic will pay a royalty to the American
Red Cross of 12% of all revenues derived from sales of products to third parties. Also, every year, an annual minimum royalty of US$30,000 is
payable.
b) An officer of the Company is entitled to receive royalties based on the sales of certain products made available to ProMetic before joining the
Company. These royalties are 0.5% of net sales or 3% of revenues received by the Company. This employee also has the exclusive right to
commercialize these products should ProMetic decide to stop developing and/or commercializing them, subject to mutually acceptable terms
and conditions. To date, no royalties have been accrued or paid.
c) In the normal course of business, the Company enters into license agreements for the market launching or commercialization of intellectual
property. Under these licenses, including those mentioned above, the Company has committed to pay royalties ranging generally between
0.5% and 10% of net sales from products it commercializes.
25. PENSION PLAN
The Company contributes to a defined contribution pension plan for all of its permanent employees. The Company matches most employees’
contributions up to 4% of their annual salary. The Company’s contributions for the year amounted to $316 ($316 in 2011).
26. FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT
Financial assets
December 31, December 31,
2012 2011
Held-for-trading
Cash, measured at fair value $ 1,205 $ 275
Restricted cash, measured at fair value 198 233
1,403 508
Loans and receivables
Accounts receivable and share purchase loan to
an officer, recorded at amortized cost 3,158 699
Share subscription receivable recorded at amortized cost 9,822 -
12,980 699
Available-for-sale
Convertible preferred shares of AM-Pharma, recorded at cost 27 27
14,410 1,234
Financial liabilities
Other financial liabilities
Bank and other loans, measured at amortized cost $ 1,636 $ 752
Trade and other payables, measured at amortized cost 5,094 7,091
PROMETIC LIFE SCIENCES INC.
50
Promissory notes from shareholders, measured at amortized cost 250 817
Repayable government grants and finance leases, measured at amortized cost 564 746
Long-term debt provided by shareholders, measured at amortized cost 4,017 4,161
Advance on revenues from a supply agreement, measured at amortized cost 3,030 3,063
14,591 16,630