PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

6. PROPERTY AND EQUIPMENT

Property and equipment, net of accumulated depreciation at December 31, 2012 and 2011 consists of the following:

	2012			2011
Computer equipment	$	176,500		$	520,647
Office equipment	381,448			388,659
Equipment	0			378,147
	557,948			1,287,453
Accumulated depreciation and amortization	(391,562		)	(426,089		)
	$	166,386		$	861,364

There was no construction in progress as of December 31, 2012 or December 31, 2011.

Based upon the conclusion of the LibiGel safety study, the merger agreement with ANI and discussions with prospective purchasers of the Company’s gel filling machine, none of which resulted in a sale of the machine, the Company has determined that the value of the Company’s gel filling machine and components was impaired; and therefore, recorded a write-down of the asset to zero. The write-down of $929,431 is classified within research and development expense in the Company’s statement of operations for the year ended December 31, 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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