Sight Technologies Inc.
Sight Technologies Inc. (Sight Technologies) has been in the business of manufacturing medical devices for eye treatments for more than 20 years. Sight Technologies enters into contractual arrangements to sell its equipment to large hospitals and universities throughout the United
States. Sight Technologies’ contractual arrangements also offer an initial option to purchase a two-year separately priced maintenance agreement for the equipment. There has been a significant increase in sales during the first quarter because of a surge in interest in the Fuzzy
View Laser product. Sight Technologies has a December 31 fiscal year-end.
On January 1, 2010, Sight Technologies signed a contract with Holland Hospital to sell the
Fuzzy View Laser. In addition to this medical equipment, the contract includes an initial option to purchase a two-year separately priced maintenance agreement on the Fuzzy View Laser. The maintenance plan includes telephone support, repair or replacement of nonconforming parts, software updates, and bug fixes for the software. Holland Hospital has elected to purchase the maintenance agreement. Sight Technologies will receive $1 million for the Fuzzy View Laser and $200,000 up front for the two years of maintenance.
Sight Technologies has never sold, nor does it offer to sell, the Fuzzy View Laser without the embedded software because the software is necessary to perform the medical procedures for which the laser is intended. The Sight Technologies maintenance agreement is available only to purchasers of the Fuzzy View Laser and has never been sold separately. There is not a general right of return for sales of the Fuzzy View Laser.
Effective January 1, 2010, at the beginning of fiscal year 2010, Sight Technologies has elected to early adopt ASU 2009-13, Multiple-Deliverable Revenue Arrangements…