2012 Annual Report - Prometic - Life Science, Inc.

i) Revenues by location
December 31, December 31,
2012 2011
United States $ 12,642 $ 15,836
Austria 3,239 13
Switzerland 2,407 892
China 2,188 131
Taiwan 2,000 -
Germany 594 23
United Kingdom 135 369
South Korea 36 -
Canada 35 -
Other countries 45 325
$ 23,321 $ 17,589
Revenues are attributed to countries based on the location of customers and not the location of subsidiaries.
The Company derives significant revenues from certain customers. During the year ended December 31, 2012, there were three customers who
accounted for 47% (18%, 15% and 14% respectively) of total revenues in the protein technologies segment. In 2011, there were two customers
who accounted for 80% (57% and 23% respectively) of total revenues, also in the protein technologies segment.
30. GOVERNMENT ASSISTANCE
The Company has received government grants from the Isle of Man Government for operating and capital expenditures.
For grants received in 2005 and 2006, amounting to $1,073 and $80, respectively, the Isle of Man government reserves the right to reclaim in part
or all of the grants should the Company leave the Isle of Man according to the following schedule – 100% repayment within five years of receipt,
then a sliding scale after that for the next 5 years – 6 years 80%, 7 years 60%, 8 years 40%, 9 years 20%, 10 years 0%.
The grants received amounted to $93 in 2012 and $16 in 2011 and were recorded as a reduction of the related capital assets.
No provision has been made in these consolidated financial statements for any future repayment relating to the above agreement.
31. CONTINGENT LIABILITIES
In 2009, the Company was served with a lawsuit relating to a claim for payment for unpaid services for a total of $195. On the basis that the
Company did not feel it was probable that this claim would be successful, no provision was made in the consolidated financial statements. During
the year ended December 31, 2012, the Company received confirmation from its legal advisor that, pursuant to a judgment, the claim has been
dismissed.
During the year ended December 31, 2012, the Company was served with a lawsuit in the Federal Court of Canada (Court) relating to a claim for
infringement of two patents held by a third party plaintiff. The Company instructed outside legal counsel to prepare, serve and file a statement
of defence on the infringement claims, in addition to a counterclaim requesting that the Court declare both patents invalid and unenforceable.
Since the plaintiff has claimed unspecified damages and none of the allegations in the claim provide any information as to the basis upon which
the plaintiff would be claiming monetary compensation and on the basis that the Company does not believe that this claim will be successful, the
Company has not taken a provision in the consolidated financial statements.
PROMETIC LIFE SCIENCES INC.
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32. SUBSEQUENT EVENTS
On January 7th, 2013, the Company received the $9,822 share subscription receivable and 48,147,053 common shares were issued under a private
placement agreement.
On February 20, 2013, the Company completed its renegotiation of its long-term debt provided by shareholders, resulting in the postponement of
related payments from July 2013 to July 2014 amounting to $4,000 (see note 18).
Also, subsequent to December 31, 2012, the Company again renegotiated its working capital grants with the Isle of Man Government Department
of Economic Development, resulting in the balance now being offset in the future against capital grants receivable from the Isle of Man
Government with any balance owing on March 31, 2014, repayable in cash.