Property And Equipment

6 Months Ended

Jun. 30, 2011

(5) Property and Equipment

Property and equipment consist of the following (in thousands):


	Estimated Life	June 30, 2011			December 31, 2010
Computer equipment	3 years	$	189		$	206
Lab equipment	5 years		142			142
Furniture and fixtures	5 years		393			398
Computer software	3 years		176			176
Leasehold improvements	Lesser of useful life or life of the lease		746			744

			1,646			1,666
Less accumulated depreciation and amortization			(1,156	)		(976	)

		$	490		$	690

As more fully described in Note 6 Operating Leases, the Company amended its office lease during the quarter ended June 30, 2011. The lease amendment resulted in a change in the estimated useful lives for existing leasehold improvements and certain furniture and fixtures, effectively shortening the estimated lives significantly. The affected assets will be amortized over approximately four months in accordance with the Company's anticipated office move. The accounting impact of this change in estimate was immaterial for the six months ended June 30, 2011.

For the six months ended June 30, 2011 and June 30, 2010, and for the period from Inception through June 30, 2011, depreciation and amortization expense was $195,000, $171,000, and $1.3 million respectively.

During the quarter and six months ended June 30, 2011, the Company entered into an agreement in which it assigned certain patent rights to a large pharmaceutical company. In exchange for the patent rights, the Company received a $2.0 million cash payment during the quarter.