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Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets
7. GOODWILL AND INTANGIBLE ASSETS

Total goodwill was $920,745 at December 31, 2011 and 2010. We completed our annual impairment tests as of November 30, 2011 and 2010, and determined that no adjustment for impairment of goodwill was required.

We have entered into a global licensing agreement for certain patents covering a therapeutic drug compound to be delivered using our dialysate product lines. We intend to seek FDA approval for this product. We have capitalized the licensing fees paid for the rights to use this patented technology as an intangible asset.

As of December 31, 2011 we had capitalized licensing fees of $1,070,126, net of accumulated amortization of $236,353. During 2011, we acquired an abbreviated new drug application (ANDA) for a generic version of an intravenous Vitamin-D analogue, calcitriol. Capitalized costs related to this ANDA were approximately $695,000. After a one year period expiring July 13, 2012, the Company, at its sole election, may return this ANDA and related license to the seller or it may pay the seller $550,000 to retain the ANDA. As the calcitriol ANDA has an indefinite life, it is not being amortized.

As of December 31, 2010 we had capitalized licensing fees of $375,005, net of accumulated amortization of $208,348. During 2010, we fully amortized the remaining portion of a separate license agreement for vitamins and carnitine in dialysate when we determined the asset was impaired following the loss of patent protection for the product.

Our policy is to amortize licensing fees over the life of the patents pertaining to certain licensing agreements. We recognized amortization expense of $28,005 in 2011, $47,299 in 2010 and $31,268 in 2009. Estimated amortization expense for licensing fees for 2012 through 2017 is approximately $28,000 per year. Our SFP licensing agreement, which is with a company owned by our chief scientific officer, requires additional payments upon achievement of certain milestones.