NOTE 6 - INTANGIBLE SOFTWARE TECHNOLOGY, NET

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 6 - INTANGIBLE SOFTWARE TECHNOLOGY, NET

On April 29, 2011, we purchased software technology (the Azido technology) for $2 million in cash and issuance of 163,934 shares of our common stock, valued at $1 million on the date of purchase.  Acquisition costs of $89,000 were capitalized as part of the transaction.  The transaction was accounted for as an asset purchase.

In 2012 and again in 2013, year-end impairment evaluations were performed.  We evaluated changes in Azido projects and projected cash flows which decreased or eliminated our expected future cash flows related to Azido technology’s use or disposition.  Based on these evaluations, impairment charges of $31,000 and $2.3 million were taken against this software technology for the years ending December 31, 2013 and 2012, respectively.  As of December 31, 2013, the Azido technology net carrying value is $0.

The following is a summary of the Company’s intangible software technology:

	December 31, 2013	December 31, 2012
(in thousands)
Intangible software technology	$35	$3,089
Less impairment charge	31	2,318
Less accumulated amortization	4	736
Intangible software technology, net	$0	$35