4. Assets Related to 2010 Expedition to Titanic Wreck Site

During August and September 2010, our wholly owned subsidiary RMST, as Salvor-In-Possession of the RMS Titanic (the “Titanic”) and its wreck site, conducted an expedition to the Titanic wreck site.

We have capitalized $4.2 million of costs related to the expedition, discussed in more detail below, which have been allocated to specific assets as reflected in the following table (in thousands).


	August 31, 2011		Februrary 28, 2011
3D film	$	1,719	$	1,719
3D exhibitry		759		759
2D documentary		565		565
Gaming application		886		886
Expedition web point of presence		317		317

Total expedition costs capitalized		4,246		4,246
Less: Accumulated amortization		175		175
Accumulated depreciation		106		53

Expedition costs capitalized, net	$	3,965	$	4,018

Costs associated with the expedition web point of presence are depreciated on a straight-line basis, using a three year useful life. Depreciation expense related to the web point of presence totaled $26 thousand and $53 thousand for the three and six months ended August 31, 2011, respectively, and $53 thousand during fiscal 2011.

The Company recorded an amortization charge of $175 thousand for the 2D documentary in the fourth quarter of fiscal 2011, as calculated over a five year life, based on the methodology outlined in Accounting Standards Codification (“ASC”) 926 “Entertainment — Films”, (“ASC 926”). No amortization was recorded for the three or six months ended August 31, 2011, as the Company did not receive any 2D film revenue during these periods.

The 3D film, 3D exhibitry and gaming application assets have not been placed in service, and therefore, no associated amortization or depreciation has been recorded for these assets.

The web point of presence and 3D exhibitry assets are included in Property and equipment on the Condensed Consolidated Balance Sheets. The 3D film, 2D documentary, and gaming assets are included in Film and gaming assets on the Condensed Consolidated Balance Sheets.