PROPERTY AND EQUIPMENT, NET

3 Months Ended

Mar. 31, 2015

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT, NET

5. PROPERTY AND EQUIPMENT, NET

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. An asset is considered to be impaired when its carrying amount exceeds the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition. The amount of impairment loss, if any, is measured as the difference between the net book value of the asset and its estimated fair value.

In December 2013, the Company amended its business model for the MelaFind system from solely a rental-based to include a capital sales option. In accordance with this new sales model, the Company reclassified $5,401,866 of MelaFind systems from property and equipment into inventory at December 31, 2013. The systems reclassified into inventory represent systems available for sale. Systems that have been leased under the rental-based model remain in property and equipment.

During the first quarter of 2015, the Company experienced net movements of MelaFind systems from property and equipment to inventory amounting to $26,037, representing a decrease of $82,795 in net book value of MelaFind systems primarily returned from expired leases, partially offset by $56,758 newly placed research units and replacement parts for existing commercial leases.

Property and equipment, at cost, consists of the following:

	March 31,			December 31,			Estimated
	2015			2014			Useful Life
Leasehold improvements	$	905,888		$	905,888		Lease Term
Laboratory and research equipment		1,083,661			1,083,661		3-5 years
Office furniture and equipment		1,969,454			1,969,454		3-5 years
MelaFind Systems		2,954,468			3,193,436		3 years
		6,913,471			7,152,439
Accumulated depreciation and amortization		(5,293,106	)		(5,191,063	)
	$	1,620,365		$	1,961,376

Depreciation expense for the three months ended March 31, 2015 and March 31, 2014 was $314,974 and $695,531, respectively.