PROPERTY AND EQUIPMENT

107 Months Ended

Dec. 31, 2011

NOTE 3—PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2011 and 2010:

Description	Life	2011			2010
Computer equipment	3 years	$	99,603		$	117,789
Office furniture and equipment	5-7 years		251,170			246,117
Software	3 years		96,097			80,480
Laboratory equipment	7 years		994,994			990,961
Leasehold improvements	10 years		603,445			465,601
Manufacturing equipment	7 years		177,528			24,568
Subtotal			2,222,837			1,925,516
Less: accumulated depreciation			(1,193,601	)		(1,109,558	)
Property and equipment, net		$	1,029,236		$	815,958

Property and equipment is carried at cost less accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful life of three to ten years, depending upon the type of equipment, except for leasehold improvements which are amortized using the straight-line method over the remaining lease term or the life of the asset, whichever is shorter. The cost of repairs and maintenance is charged as an expense as incurred. Depreciation expense totaled $210,252 and $168,843 for the years ended December 31, 2011 and 2010, respectively.

- 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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