Property and Equipment and Intangible Assets

9 Months Ended

Sep. 30, 2011

Property and Equipment and Intangible Assets

3. Property and Equipment and Intangible Assets

Property and equipment and intangible assets consists of the following:

	December 31, 2010			September 30, 2011
				(Unaudited)
Laboratory equipment	$	2,389,339		$	2,909,225
Furniture and equipment		735,731			736,680
Leasehold improvements		194,899			194,899
		3,319,969			3,840,804
Less: Accumulated depreciation		(2,621,214	)		(2,807,239	)
Total property and equipment, net	$	698,755		$	1,033,565

Internally developed software	$	107,062		$	48,461
Less: Accumulated depreciation and amortization		—			(1,615	)
Total intangible assets, net	$	107,062		$	46,846

Internally developed software consists of various projects the Company has developed. The projects were completed during the third quarter of 2011. Depreciation and amortization expense, included in cost of revenue, general and administrative expenses, and research and development expenses, for the three months ended September 30, 2010 and 2011 was $90,600 and $90,606, respectively, and for the nine months ended September 30, 2010 and 2011 was $258,302 and $262,591, respectively. During the period ending September 2011 the company established a capital lease for various lab equipment. The fair value of the lease was $345,000, and the lease is for a three year term. Amortization expense for this lease for the period ending September 30, 2011 was $19,167.

During September 2011, the company recognized as asset impairment in the amount of $157,241. This represents the amount of internal costs that were capitalized for software development. Employees that were tasked with this project were terminated during the period and management concluded that the work done to date was not expected to provide substantive service potential to the Company.

- 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.

+ References+ Details