Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

8. Goodwill and Other Intangible Assets

     The Company's intangible assets consist of goodwill, patents, trademarks, and other intangible assets, as discussed further below. These assets include goodwill, acquired technology, customer lists, and other intangible assets from the acquisition of Cardiogenesis, as discussed in Note 4 above, and PerClot distribution and manufacturing rights acquired from SMI as discussed in Note 5 above.

Indefinite Lived Intangible Assets

     As of June 30, 2011 and December 31, 2010 the carrying values of the Company's indefinite lived intangible assets are as follows (in thousands):

		June 30,			December 31,
		2011			2010
Goodwill	$	4,442	$	-	-
Procurement contracts and agreements		2,013			2,013
Trademarks		799			790
Other		250		-	-

     Based on its experience with similar agreements, the Company believes that its acquired contracts and procurement agreements have an indefinite useful life, as the Company expects to continue to renew these contracts for the foreseeable future. Accordingly, the Company's indefinite lived intangible assets do not amortize, but are instead subject to periodic impairment testing.

Definite Lived Intangible Assets

     The Company generally amortizes its definite lived intangible assets over their expected useful lives using the straight-line method. As of June 30, 2011 and December 31, 2010 gross carrying values, accumulated amortization, and approximate amortization periods of the Company's definite lived intangible assets are as follows (in thousands):

		Gross
		Carrying		Accumulated	Amortization
June 30, 2011		Value		Amortization	Period
Acquired technology	$	9,230	$	105	11 Years
Patents		5,820		2,684	17 Years
Distribution and manufacturing rights		2,559		128	15 Years
Customer lists		2,370		23	13 Years
Non-compete agreements		381		172	10 Years
Other		116		25	2-3 Years
December 31, 2010
Patents	$	5,885	$	2,603	17 Years
Distribution and manufacturing rights		2,559		43	15 Years
Non-compete agreements		381		152	10 Years
Customer lists		64		11	3 Years

Amortization Expense

The following is a summary of amortization expense (in thousands):

	Three Months Ended					Six Months Ended
		June 30,				June 30,
	2011		2010			2011		2010
Amortization expense	$	306	$	132	$	481	$		263

As of June 30, 2011 scheduled amortization of intangible assets for the next five years is as follows (in thousands):

		Remainder of
		2011		2012		2013		2014		2015		2016
Amortization expense	$	873	$	1,732	$	1,628	$	1,529	$	1,502	$	1,490