Property and Equipment and Intangible Assets

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment and Intangible Assets

3. Property and Equipment and Intangible Assets

Property and equipment and intangible assets consist of the following:

	December 31, 2012		June 30, 2013
			(Unaudited)
Laboratory equipment	$	3,315,812	$	3,641,230
Furniture and equipment		660,626		698,488
Leasehold improvements		305,059		330,536
		4,281,497		4,670,254
Less: Accumulated depreciation		(3,258,299)		(3,488,784)
Total property and equipment, net	$	1,023,198	$	1,181,470
Purchased software	$	562,699	$	616,045
Internally developed software		108,362		108,362
		671,061		724,407
Less: Accumulated amortization		(95,652)		(152,021)
Total intangible assets, net	$	575,409	$	572,386

Intangible assets are carried at the cost to obtain them. Purchased software and internally developed intangible assets are amortized using the straight-line method over the estimated useful life of five years. Depreciation expense, included in cost of revenue, general and administrative expenses, and research and development expenses for the three months ended June 30, 2012 and 2013 was $120,957 and $149,455, respectively, and for the six months ended June 30, 2012 and 2013 was $230,131 and $286,856, respectively.

At June 30, 2013, the Company had committed to purchase laboratory equipment, software and related maintenance agreements totaling $360,000, and the Company anticipates using this equipment starting in the third quarter of 2013. During June 2013, the Company signed two financing agreements for $239,150 in aggregate and accounted for both of these financings as capital leases. In July 2013, the Company entered into a financing agreement for the remaining $125,850 and accounted for this agreement as an operating lease. The future financial commitments under the three financing agreements are included in these notes to the financial statements in the discussions of capital lease commitments and operating lease commitments. The Company recorded the cost of the purchased items in the balance sheet at June 30, 2013 as $33,850 in prepaid expenses, $197,800 in laboratory equipment, and $7,500 in purchased software.

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 June 30, 2013 as follows:

	(Unaudited)
Equipment purchased under capital leases	$	690,384
Less: Accumulated amortization		(304,519)
Equipment purchased under capital leases, net	$	385,865

Future minimum lease payments under capital leases as of June 30, 2013 are as follows:

Years ending December 31,	(Unaudited)
2013	$	136,389
2014		188,428
2015		101,309
2016		50,654
Total minimum lease payments		476,780
Less amount representing interest		(84,121)
Less current portion		(208,504)
Capital lease obligation, net of current portion	$	184,155