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Financial Instruments
 12 Months Ended
Dec. 31, 2011
Financial Instruments [Abstract]  
Financial Instruments

Note 2. Financial Instruments

Cash, cash equivalents and marketable securities

The following table summarizes the fair value of our cash, cash equivalents and available-for-sale securities held in our investment portfolio:

 

                                 
    Amortized
Cost		     Gross
Unrealized
Gains		     Gross
Unrealized
Losses		     Fair Value  

December 31, 2011

                                

Cash

   $ 291,093     $ —       $ —       $ 291,093  

Cash equivalents (money market accounts)

     13,020,168       —         —         13,020,168  

Marketable debt securities, current

     3,283,209       (2,618 )      —         3,280,591  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total cash, cash equivalents, and marketable securities

   $ 16,594,470     $ (2,618 )    $ —       $ 16,591,852  
   

 

 

    

 

 

    

 

 

    

 

 

  

December 31, 2010

                                

Cash

   $ 1,001,868     $ —       $ —       $ 1,001,868  

Cash equivalents (money market accounts)

     18,705,953       —         —         18,705,953  

Marketable equity securities, current

     74,456       116,348       —         190,804  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total cash, cash equivalents, and marketable securities

   $ 19,782,277     $ 116,348     $ —       $ 19,898,625  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

At December 31, 2011, our investment in money market accounts are composed primarily of U.S. Treasury debt securities, which are classified as cash equivalents in the accompanying Consolidated Balance Sheet due to their short maturities. Our investment in short-term marketable debt securities are composed primarily of commercial paper and corporate debt securities. From time to time, we carry cash balances in excess of federally insured limits. Our cash balance at December 31, 2011 includes approximately $45,000 held in U.K. pounds by our U.K. subsidiary.

Our investment in marketable equity securities consisted of ordinary shares of ReNeuron Group Plc (ReNeuron), a publicly listed U.K. corporation. In July 2005, we entered into an agreement with ReNeuron under which we granted ReNeuron a license that allows ReNeuron to exploit its “c-mycER” conditionally immortalized adult human neural stem cell technology for therapy and other purposes. We received shares of ReNeuron common stock, as well as a cross-license to the exclusive use of ReNeuron’s technology for certain diseases and conditions, including lysosomal storage diseases, spinal cord injury, cerebral palsy, and multiple sclerosis. The agreement also provides for full settlement of any potential claims that either we or ReNeuron might have had against the other in connection with any putative infringement of certain of each party’s patent rights prior to the effective date of the agreement. In July and August 2005, we received approximately 8,836,000 ordinary shares of ReNeuron common stock, net of approximately 104,000 shares that were transferred to NeuroSpheres, Ltd., an Alberta corporation (NeuroSpheres), and subsequently, as a result of certain anti-dilution provisions in the agreement, we received approximately 1,261,000 more shares, net of approximately 18,000 shares that were transferred to NeuroSpheres. In February 2007, we sold 5,275,000 shares for net proceeds of approximately $3,075,000. We recognized approximately $716,000 as realized gain from this transaction. In the first quarter of 2009, we sold 2,900,000 shares of ReNeuron and received net proceeds of approximately $510,000 for a realized gain of approximately $398,000. In the second quarter of 2011, we sold our remaining 1,921,924 shares of ReNeuron and received net proceeds of approximately $158,000 for a realized gain of approximately $84,000. As of June 30, 2011, we no longer hold any shares of ReNeuron.

Changes in fair value as a result of changes in market price per share or the exchange rate between the U.S. dollar and the British pound are accounted for under “other comprehensive income (loss)” if deemed temporary and are not recorded as “other income or loss” until the shares are disposed of and a gain or loss realized or an impairment is considered other than temporary.

We do not hold any investments that were in an unrealized loss position as of December 31, 2011.

Note Receivable

In December 2008 and March 2009, we made two secured loans to SCS in connection with our acquisition of its operations. The loans accrued interest at 8% per annum and were repayable six months after the initial funding. At March 31, 2009, the principal and accrued interest for these two loans together totaled approximately $709,000. On April 1, 2009, we closed the acquisition of the operations of SCS, and in connection with that transaction, we waived the obligation of SCS to repay the principal and accrued interest of these two loans.