Solvgen Inc

Case 10-1 SolvGen Inc. Direct Drugs Inc. (Direct) is planning to acquire SolvGen Inc. (SolvGen or the Company), a publicly owned company, during the fourth pass of fiscal story ending December 31, 2010. Direct has engaged our audit work police police squad to perform due diligence procedures, with an fierceness on the review of two separate material agreements: (1) a explore and training agreement and (2) a licence and distribution agreement, both executed by SolvGen during the first quarter of fiscal year 2010. Directs management provided the engagement squad with the undermentioned memo describing the Companys revenue science policy: M EMO To: Audit Engagement Team From: CFO, SolvGen Inc. overt: tax income Recognition for Research and Development and License and dispersal Agreements duration: November 30, 2010 SolvGen Inc. (the Company), an SEC registrant, is a pharmaceutical rearment company. SolvGen entered into a five-year seek and school ing agreement with Careway Pharma Inc. (Careway) on January 1, 2010. The research and development agreement calls for SolvGen to role its best efforts to further develop proprietary shaft systems that have been to a lower can development for nearly 18 months and are expected to be constitute for commercial launch in the near future.

In connexion with executing the research and development arrangement, SolvGen and Careway also entered into a five-year license and distribution agreement dated January 1, 2010. Under the terms of the research and development agreement, SolvGen retains all intellectual righ ts to the results of the research and develo! pment agreement (even in the event of default by the Company). In connection with this agreement, SolvGen is entitled to the following nonrefundable milestone payments from Careway: 1. Exclusive dialog payment $1 billion (paid December 1, 2009). 2. Contract subscribe payment $2 trillion (paid January 1, 2010). 3. Commercial launch of instrument system...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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