Balance Sheet Account Detail

(a) Inventories

Inventories are stated at the lower of cost or market value. Inventories consisted of the following:



	June 30, 2012		December 31, 2011
Raw materials	$	5,443	$	3,260
Work-in-process	4,888		4,617
Finished goods	9,507		10,222
Inventories	$	19,838	$	18,099

(b) Goodwill and Intangible Assets

The following table presents goodwill, indefinite lived intangible assets, finite lived intangible assets, and related accumulated amortization:



	June 30, 2012			December 31, 2011
Goodwill	$	27,073		$	27,073

Intangible assets:
Indefinite lived intangibles
In-process research and development (a)	$	40,100		$	40,100
Trademarks and trade names	2,708			2,708
Total indefinite lived intangibles	$	42,808		$	42,808

Finite lived intangibles
Developed technology	$	14,050		$	14,050
Accumulated amortization	(14,050		)	(13,465		)
Developed technology, net	$	—		$	585

Patent	100			100
Accumulated amortization	(65		)	(54		)
Patent, net	35			46
Intangible assets (excluding goodwill), net	$	42,843		$	43,439

(a) Will be reclassified to finite lived intangibles and amortized upon the commercial launch of the product (Nellix Device) associated with this intangible asset.

Goodwill and other intangible assets with indefinite lives are not subject to amortization, but are tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired. The Company most recently performed its annual goodwill and other indefinite lived intangible asset impairment analysis as of June 30, 2012, with no resulting impairment. The Company will continue to test for impairment as of June 30 each year, or whenever events or changes in circumstances indicate that an asset might be impaired.

Intangible assets with finite lives are amortized over their expected useful life and related impairment testing is only performed when impairment indicators are present.

The Company recognized amortization expense on intangible assets during the three and six months ended June 30, 2012 and 2011 as follows:



	Three Months Ended, June 30				Six Months Ended, June 30
	2012		2011		2012		2011
Amortization expense	$	239	$	356	$	595	$	713

Estimated amortization expense for the remainder of 2012 and the three succeeding fiscal years (which includes estimated amortization of intangible assets to commence with the expected launch of the Nellix Device in Europe during the first half of 2013) is as follows:



	Amortization Expense
Remainder of 2012	$	10
2013	$	70
2014	$	194
2015 and thereafter	$	39,861