Note 6. Investments

Short-Term Investments:

Our short-term investments with large U.S. and international banks are carried at cost and consist of certificates of deposit with maturities, at purchase, ranging from 6 to 12 months.

Long-Term Investments:

Detail of long-term investments:



	April 26,		April 27,
	2013		2012
Available-for-sale debt security (1)	$	0	$	5,508,768
Cost method equity security (2)		10,588,202		4,000,000
Carrying amount – long-term investments	$	10,588,202	$	9,508,768

⁽¹⁾ The available-for-sale convertible debt security was issued by NeuroVista Corporation (“NeuroVista”) on August 20, 2010. NeuroVista is a privately-held company that was focused on the development of an implantable device intended to inform patients when seizures are likely to occur, as well as to alert caregivers when seizures do occur. During the quarter ended July 27, 2012, we recorded an other-than-temporary impairment loss of $4.1 million based on our determination that the fair value of the investment was below our carrying value. In addition, during the quarter ended October 26, 2012, NeuroVista advised us that an event of default had occurred under the terms of the convertible debt security. We subsequently took possession of tangible and intangible assets in a foreclosure settlement of the note. We obtained assets fair valued at $1.45 million. See “Note 18. Fair Value Measurements” for further details regarding this investment.

⁽²⁾ The cost method equity security investments at April 26, 2013 consisted of $8.0 million of convertible preferred stock of ImThera Medical, Inc. (“ImThera”) and $2.6 million of convertible preferred shares of Cerbomed GmbH (“Cerbomed”). ImThera is a privately-held company focused on developing a neurostimulation device system for the treatment of obstructive sleep apnea and Cerbomed is a privately-held German company focused on developing a transcutaneous vagus nerve stimulation device for the treatment of epilepsy. These investments provide us with less than 20% ownership and no significant influence over the entity involved. The investment at April 27, 2012 consisted of our original $4.0 million investment in ImThera. We added an additional $4.0 million investment in the quarter ending April 26, 2013. We are contractually committed to purchase one additional tranche of convertible preferred stock of $4.0 million contingent on ImThera attaining certain performance goals. See “Note 18. Fair Value Measurements” for further details regarding our impairment policy for these cost method securities.