Property and Equipment and Intangible Assets

12 Months Ended

Dec. 31, 2012

Property and Equipment and Intangible Assets [Abstract]

Property and Equipment and Intangible Assets

3. Property and Equipment and Intangible Assets

Property and equipment consists of the following:

	December 31, 2011			December 31, 2012
Laboratory equipment	$	3,036,274		$	3,315,812
Furniture and equipment		624,859			660,626
Leasehold improvements		194,899			305,059
		3,856,032			4,281,497
Less: Accumulated depreciation		(2,810,745	)		(3,258,299	)
Total property and equipment, net	$	1,045,287		$	1,023,198
Purchased software	$	91,505		$	562,699
Internally developed software		48,461			108,362
		139,966			671,061
Less: Accumulated amortization		(73,151	)		(95,652	)
Total intangible assets, net	$	66,815		$	575,409

Intangible assets are carried at the cost to obtain them. Internally developed intangible assets are amortized using the straight-line method over the estimated useful life of five years. At December 31, 2012, the Company had not yet begun amortizing purchased software costs related to its new laboratory information management system because it had not yet been implemented. The Company expects to deploy the laboratory information management system in early 2013. Depreciation expense, included in cost of revenue, general and administrative expenses, and research and development expenses for the years ended December 31, 2011 and 2012 was $366,695 and $470,054, respectively. During the years ended December 31, 2011 and 2012, the Company recorded impairment losses of $157,241 and $0, respectively, relating to the abandonment of capitalized software development costs.

Expected future amortization of intangible assets over the next five years ending is as follows: $120,872 in 2013, $120,766 in 2014, $120,050 in 2015, $113,664 in 2016, and $100,057 in 2017.

Capital Lease

The Company leases certain equipment that is recorded as capital leases. This equipment is included in property and equipment on the accompanying balance sheet as of December 31, 2012 as follows:

Capital leased equipment	$	451,234
Less: Accumulated amortization		(220,460	)
Capital leased equipment, net	$	230,774

Future minimum lease payments under capital leases as of December 31, 2012 are as follows:

Years ending December 31,
2013		175,548
2014		87,119
Total minimum lease payments		262,667
Less amount represented by interest		(20,088	)
Less current portion		(158,669	)
Capital lease obligation, net of current portion	$	83,910

- 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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