Property, Plant and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT

The following table summarizes property, plant and equipment as of December 31, 2013 and December 31, 2012:

	As of December 31,
	2013			2012
Building	$	5,820,509		$	5,820,735
Furniture, fixtures, computer hardware and computer software	461,491			426,517
Manufacturing machinery and equipment	32,332,905			32,847,052
Leasehold improvements	—			884,709
Depreciable property, plant and equipment	38,614,905			39,979,013
Less: Accumulated depreciation and amortization	(17,850,688		)	(12,725,298		)
Net property, plant and equipment	$	20,764,217		$	27,253,715

The Company analyzes its long-lived assets for impairment, both individually and as a group, whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. During the quarter ended June 30, 2011, an impairment charge in the amount of approximately $74.5 million was taken against Property, Plant and Equipment. This impairment, combined with a charge of approximately $3.5 million taken against Deposits on manufacturing equipment, resulted in a total write-down of $78.0 million in the quarter ended June 30, 2011. This write-down resulted in net assets of approximately $32.2 million being recorded at fair value as of June 30, 2011. The fair value measurement for these assets relied primarily on Company-specific inputs and the Company’s assumptions about the use of the assets, as observable inputs were not available. Accordingly, the Company determined these fair value measurements reside primarily within Level 3 of the fair value hierarchy.

Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $6,186,889, $6,142,560 and $7,527,150, respectively. Depreciation expense is recorded under “Research, development and manufacturing operations” expense and “Selling, general and administrative” expense in the Condensed Statements of Operations.

The Company incurred and capitalized interest costs related to the manufacturing facility building loan as follows during the years ended December 31, 2013, 2012 and 2011:

	For the years ended December 31,
	2013		2012			2011
Interest cost incurred	$	432,426	$	449,302		465,103
Interest cost capitalized	—		(177,309		)	(351,632		)
Interest expense, net	$	432,426	$	271,993		$	113,471

In December 2012, all of the production equipment to be installed in the manufacturing facility had been delivered and was in service, therefore the Company no longer capitalizes interest related to its manufacturing facility building loan.