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Property and Equipment

6 Months Ended

Jun. 30, 2012

Property and Equipment [Abstract]

Property and Equipment

(5) Property and Equipment

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


		Estimated Life		June 30, 2012				December 31, 2011
Computer equipment		3 years			104			$	104
Lab equipment		5 years			142				142
Furniture and fixtures		5 years			93				93
Computer software		3 years			176				176
Leasehold improvements		Lesser of useful life or life of the lease			19				18

					534				533
Less accumulated depreciation and amortization					(491	)			(467	)

				$	43			$	66

As more fully described in Note 6, Commitments and Contingencies, Operating Leases, the Company amended its office lease during the second quarter of 2011. The lease amendment resulted in a change in the estimated useful lives for leasehold improvements and certain furniture and fixtures in use at the time of the amendment, effectively shortening the estimated lives significantly. The affected assets were amortized over approximately four months, the period of time from the date of the amendment to the date of the Company’s office move, and then disposed of in conjunction with the office move.

For the six months ended June 30, 2012 and June 30, 2011, and for the period from Inception through June 30, 2012, depreciation and amortization expense was $24,000, $195,000, and $1.8 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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