XML 31 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Intangible assets and royalty agreement (Details) (USD $)
9 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]    
Gross Carrying Value $ 17,526,000 $ 17,526,000
Impairment Adjustment (1,798,495)  
Accumulated Amortization (4,586,161) (3,468,515)
Net Carrying Value 11,141,344 14,057,485
Indefinite-lived Intangible Assets [Line Items]    
Intangible assets, gross carrying value 18,559,000 18,559,000
Impairment Adjustment (1,798,495)  
Intangible Assets, Accumulated Amortization (4,586,161) (3,468,515)
Intangible assets, net carrying value 12,174,344 15,090,485
Estimated future amortization expense [Abstract]    
2012 262,595 [1]  
2013 1,050,380  
2014 1,046,047  
2015 1,022,651  
2016 976,998  
Thereafter 6,782,673  
Total 11,141,344 14,057,485
Trade names and trademarks [Member]
   
Indefinite-lived Intangible Assets [Line Items]    
Weighted average useful life indefinite [2]  
Gross Carrying Value 1,008,000 [2] 1,008,000 [2]
Net Carrying Value 1,008,000 [2] 1,008,000 [2]
In process research and development, other [Member]
   
Indefinite-lived Intangible Assets [Line Items]    
Weighted average useful life indefinite [2]  
Gross Carrying Value 25,000 [2] 25,000 [2]
Net Carrying Value 25,000 [2] 25,000 [2]
License-Shriners Hsp for Children & USF Research [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 10 years [3]  
Gross Carrying Value 996,000 [3] 996,000 [3]
Accumulated Amortization (562,733) [3] (488,033) [3]
Net Carrying Value 433,267 [3] 507,967 [3]
Acquisition price, one-time license fee 100,000  
Shares issued for intangibles (in shares) 1,120,000  
Value of shares issued for intangibles 896,000  
Contingent payments to licensor 200,000  
Contingent royalty to be paid to licensor (in hundredths) 3.00%  
Estimated future amortization expense [Abstract]    
Total 433,267 [3] 507,967 [3]
License - SaluMedica LLC Spine Repair [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 10 years [4]  
Gross Carrying Value 2,399,000 [4] 2,399,000 [4]
Impairment Adjustment (851,676) [4]  
Accumulated Amortization (1,535,586) [4] (1,313,573) [4]
Net Carrying Value 11,738 [4] 1,085,427 [4]
Estimated future amortization expense [Abstract]    
Total 11,738 [4] 1,085,427 [4]
License - Polyvinyl Alcohol Cryogel [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 10 years [5]  
Gross Carrying Value 2,667,000 [5] 2,667,000 [5]
Impairment Adjustment (946,819) [5]  
Accumulated Amortization (1,203,170) [5] (998,932) [5]
Net Carrying Value 517,011 [5] 1,668,068 [5]
Shares issued for intangibles (in shares) 400,000  
Value of shares issued for intangibles 2,596,000  
Number of shares issuable upon meeting certain milestones (in shares) 600,000  
Contingent payments to licensor, shares issued (in shares) 100,000  
Contingent payment to licensor, value of shares issued 71,000  
Estimated future amortization expense [Abstract]    
Total 517,011 [5] 1,668,068 [5]
Customer Relationships [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 14 years [2]  
Gross Carrying Value 3,520,000 [2] 3,520,000 [2]
Accumulated Amortization (440,000) [2] (251,429) [2]
Net Carrying Value 3,080,000 [2] 3,268,571 [2]
Estimated future amortization expense [Abstract]    
Total 3,080,000 [2] 3,268,571 [2]
Supplier Relationships [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 14 years [2]  
Gross Carrying Value 241,000 [2] 241,000 [2]
Accumulated Amortization (30,125) [2] (17,215) [2]
Net Carrying Value 210,875 [2] 223,785 [2]
Estimated future amortization expense [Abstract]    
Total 210,875 [2] 223,785 [2]
Patents and know-how [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 14 years [2]  
Gross Carrying Value 5,530,000 [2] 5,530,000 [2]
Accumulated Amortization (691,250) [2] (395,000) [2]
Net Carrying Value 4,838,750 [2] 5,135,000 [2]
Estimated future amortization expense [Abstract]    
Total 4,838,750 [2] 5,135,000 [2]
Micronized Processing Know-How [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 14 years [2]  
Gross Carrying Value 2,160,000 [2] 2,160,000 [2]
Accumulated Amortization (115,714) [2] 0 [2]
Net Carrying Value 2,044,286 [2] 2,160,000 [2]
Estimated future amortization expense [Abstract]    
Total 2,044,286 [2] 2,160,000 [2]
Licenses and permits [Member]
   
Finite-Lived Intangible Assets [Line Items]    
Weighted Average Amortization Lives 3 years [2]  
Gross Carrying Value 13,000 [2] 13,000 [2]
Accumulated Amortization (7,583) [2] (4,333) [2]
Net Carrying Value 5,417 [2] 8,667 [2]
Estimated future amortization expense [Abstract]    
Total $ 5,417 [2] $ 8,667 [2]
[1] Estimated amortization expense for the year ending December 31, 2012 includes only amortization to be recorded after September 30, 2012.
[2] On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for customer and supplier relationships, patents and know-how, licenses/permits, trade names and trademarks and in-process research and development.
[3] On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. The acquisition price of this license was a one-time fee of $100,000 and 1,120,000 shares of common stock valued at $896,000 (based upon the estimated fair value of the common stock on the transaction date). Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products.
[4] License from SaluMedica, LLC (SaluMedica) for the use of certain developed technologies related to spine repair. This license was acquired through the acquisition of SpineMedica Corp.
[5] On March 31, 2008, the Company entered into a license agreement for the use of certain developed technologies related to surgical sheets made of polyvinyl alcohol cryogel. The acquisition price of the asset was 400,000 shares of common stock valued at $2,596,000 (based upon the closing price of the common stock on the transaction date). The agreement also provides for the issuance of an additional 600,000 shares upon the Company meeting certain milestones related to future sales. On December 31, 2009, the Company completed the sale of its first commercial product and met its first milestone under this agreement. As a result, the Company issued an additional 100,000 shares of common stock to the licensor valued at $71,000. At September 30, 2012 and 2011, there are no additional amounts accrued for this obligation due to its contingent nature.