Note 12 - Accrued Liabilities

12 Months Ended

Dec. 31, 2011

Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block]

NOTE 12 - ACCRUED LIABILITIES:

Accrued liabilities at December 31, 2011 and 2010 consisted of the following (000’s omitted):

	2011		2010
Accrued payroll	$	1,588	$	2,937
Accrued employee incentives and benefits		2,371		3,229
Accrued physician incentives (VCA)		3,978		3,404
Accrued costs on behalf of medical practices		4,849		3,695
Accrued rent		2,071		1,028
Accrued professional fees		539		819
Reserves for estimated Attain IVF patient refunds		238		386
Reserve for Attain IVF post-pregnancy medical costs		393		431
Other (1)		1,047		1,336
Total accrued liabilities	$	17,074	$	17,265

(1) Individually represents less than 5% of total accrued liabilities.

Our Attain IVF refund and medical cost reserves provide for warranty costs associated with revenue we record from our Attain IVF Programs.  Our deferred revenue relating to Attain IVF is comprised of both a refundable and non-refundable portion.  We recognize the non-refundable portion of the product enrollment fee as revenue based on the relative value of a completed treatment cycle to the value of all treatment cycles included in the product offering. The refundable portion of any product offering (in addition to any amounts not yet recognized) are recognized as revenue at the time a patient becomes pregnant and a fetal heartbeat is achieved (at which point most patients will go on to successfully deliver a baby).  When we recognize non-refundable revenue related to a patient achieving pregnancy (as opposed to a cycle completed in regards to non-refundable fees) or when a patient withdraws from the program, we will establish reserves at each balance sheet date for patients who have been classified as pregnant, but have not yet delivered a baby.  These reserves are:

A Refund Reserve:  A reserve for those patients who have become pregnant, but may not successfully deliver a baby and who will request the refundable portion of the program fee to be returned to them. The Refund Reserve is calculated by reviewing the percentage of revenue recognized at time of pregnancy, which was later refunded to the patient due to a baby not being successfully delivered.  We have not had any material adjustments to the reserve balance other than the normal accounting activity to reflect the changing related asset values.

Medical Cost Reserves: A reserve for additional medical treatment costs for a patient who has become pregnant, but has not yet delivered a baby and has additional treatment cycles available to them under the program.  The Medical Cost Reserve is calculated by reviewing the percentage of revenue recognized at time of pregnancy, which was later spent on further medical costs.  We have not had any material adjustment to the reserve balance other than the normal accounting activity to reflect the changing related asset values.

We base the estimates for both reserves upon reliable, actual Company specific data with regards to a large homogenous population which we have served for more than nine years.