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Balance Sheet Details

12 Months Ended

Dec. 31, 2012

6. Balance Sheet Details

Inventory

Inventories are recorded at standard cost on a first-in, first-out basis. Inventories consist of the following (in thousands) as of:


	December 31, 2012			December 31, 2011
Raw materials	$	325		$	353
Work in progress		597			495
Finished goods		5,293			5,699

		6,215			6,547
Reserve		(904	)		(224	)

Net inventory	$	5,311		$	6,323

The Company reviews inventory periodically and reduces the carrying value of items considered to be slow moving or obsolete to their estimated net realizable value. The Company considers several factors in estimating the net realizable value, including shelf lives of raw materials, estimated demand for its enzyme products and historical write-offs.

Property and equipment

Property and equipment is stated at cost and depreciated over the estimated useful lives of the assets (generally three to five years) using the straight-line method.

Property and equipment consists of the following (in thousands):


		December 31, 2012			December 31, 2011
					As Restated
Laboratory, machinery and equipment	3-5 years	$	28,308		$	24,927
Computer equipment	3 years		4,350			3,031
Furniture and fixtures	5 years		899			0
Building	40 years		18,748			7,298
Leasehold improvements	Over term of lease		4,529			506
Construction in progress			6,412			4,106

Property and equipment, gross			63,246			39,868
Less: Accumulated depreciation and amortization			(26,448	)		(24,257	)

Property and equipment, net		$	36,798		$	15,611

Construction in progress assets related primarily to equipment associated with the build out of the Company’s pilot bioprocess development plant and automation laboratory which the Company placed in service during the first quarter of 2013. The pilot bioprocess development plant is expected to have a useful life of 10 years. Depreciation expense related to the Company’s new building commenced in June 2012, on the commencement date of the lease.

Accrued expenses

Accrued expenses consists of the following (in thousands):


	December 31, 2012		December 31, 2011
			As Restated
Employee compensation	$	3,129	$	3,138
Professional and outside services costs		841		1,060
Accrued interest on debt		262		479
Royalties		980		1,202
Accrued restructuring		61		396
Accrued taxes		265		36
Other		155		316

	$	5,693	$	6,627