PROPERTY AND EQUIPMENT

12 Months Ended

Dec. 31, 2012

NOTE 4—PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2012 and 2011:

Description	Life	2012			2011
Computer equipment	3 years	$	121,129		$	99,603
Office furniture and equipment	5-7 years		274,438			251,170
Software	3 years		149,867			96,097
Laboratory equipment	7 years		1,020,158			994,994
Leasehold improvements	10 years		622,772			603,445
Manufacturing equipment	7 years		571,187			177,528
Subtotal			2,759,551			2,222,837
Less: accumulated depreciation			(1,494,510	)		(1,193,601	)
Property and equipment, net		$	1,265,041		$	1,029,236

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 $303,677 and $210,252 for the years ended December 31, 2012 and 2011, 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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