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Property And Equipment

9 Months Ended

Sep. 30, 2011

Property And Equipment [Abstract]

Property And Equipment

(5) Property and Equipment

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


		Estimated Life		September 30, 2011				December 31, 2010
Computer equipment		3 years		$	189			$	206
Lab equipment		5 years			142				142
Furniture and fixtures		5 years			388				398
Computer software		3 years			176				176
Leasehold improvements		Lesser of useful life or life of the lease			746				744

					1,641				1,666
Less accumulated depreciation and amortization					(1,475	)			(976	)

				$	166			$	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 are being amortized over approximately four months in accordance with the Company's anticipated office move. The change in estimate resulted in approximately $284,000 of increased depreciation and amortization expense in for the nine months ended September 30, 2011.

For the nine months ended September 30, 2011 and September 30, 2010, and for the period from Inception through September 30, 2011, depreciation and amortization expense was $518,000, $255,000, and $1.7 million respectively.

During the second quarter of 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 that quarter.

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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