Intangible Assets

6 Months Ended

Jun. 30, 2011

Intangible Assets

5. Intangible Assets

In January 2009, the Company acquired certain technological and intellectual property assets from Cyberkinetics Neurotechnology Systems, Inc., or Cyberkinetics, and Andara Life Science, Inc., a wholly-owned subsidiary of Cyberkinetics, for $350,000 in cash. The Company has been amortizing these intangible assets using the straight-line method over their economic lives, which was estimated to be five years. Research and development expenses included amortization of this technological and intellectual property of $17,500 and $35,000 for the quarter and six months ended June 30, 2010, respectively, and $17,500 for the quarter and six months ended June 30, 2011.  During the quarter ended June 30, 2011,  the Company recorded an impairment charge of $192,500 for the remaining unamortized balance of these assets following a decision made during the second quarter of 2011 by the Company to terminate development work related to this technology. This charge was recorded in research and development expenses.