XML 69 R10.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Goodwill and Other Intangible Assets | 3 Months Ended
--- | ---
Mar. 31, 2013
Goodwill and Other Intangible Assets [Abstract] |
Goodwill and Other Intangible Assets | Note 4. Goodwill and Other Intangible Assets On April 1, 2009, we acquired the operations of Stem Cell Sciences Plc (SCS) for an aggregate purchase price of approximately $5,135,000. The acquired operations includes proprietary cell technologies relating to embryonic stem cells, induced pluripotent stem (iPS) cells, and tissue-derived (adult) stem cells; expertise and infrastructure for providing cell-based assays for drug discovery; a cell culture products business; and an intellectual property portfolio with claims relevant to cell processing, reprogramming and manipulation, as well as to gene targeting and insertion. The purchase price was allocated as follows:
|  | Allocated purchase Price |  |  | Estimated life of intangible assets in years |
Net tangible assets |  | $ | 36,000 |  |  |  |  |
Intangible assets: |  |  |  |  |  |  |  |
Customer relationships and developed technology |  |  | 1,310,000 |  |  |  | 6 to 9 |
In-process research and development |  |  | 1,340,000 |  |  |  | N/A |
Trade name |  |  | 310,000 |  |  |  | 15 |
Goodwill |  |  | 2,139,000 |  |  |  | N/A |
Total |  | $ | 5,135,000 |  |  |  |  |
In-process research and development assets relate to: 1) the acquisition of certain intellectual property rights not expected to expire until 2027 related to our program focused on developing genetically engineered rat models of human disease (our “Transgenic Rat Program”); and 2) the acquisition of certain technology related to the commercialization of our SC Proven cell culture products and the development and commercialization of cell-based assay platforms for use in drug discovery and development (our “Assay Development Program”). At the time of valuation (April 2009), our Transgenic Rat Program was in its nascent stage and our Assay Development Program was expected to achieve proof of concept by 2012. Neither program was expected to begin generating revenue until 2011-2012. In December 2011, in part because of management’s decision to focus on our therapeutic product development programs and not to allocate time and resources to the assays technology, we determined that we could not predict the future cash flows from the intangible IPR&D asset related to the Assay Development Program. Therefore, at December 31, 2011, we determined that the intangible asset was impaired and wrote off the approximately $655,000 carrying value of the asset. Trade name relates to the “SC Proven” trademark of our cell culture products which we expect to market for 15 years from the date of acquisition, based on which, we estimated a remaining useful life of 15 years from the valuation date. The following table presents changes in goodwill:
Balance as of December 31, 2012 |  | $ | 1,983,426 |
Foreign currency translation |  |  | (130,384 | )
Balance as of March 31, 2013 |  | $ | 1,853,042 |
The components of our other intangible assets at March 31, 2013 are summarized below:
Other Intangible Asset Class |  | Cost |  |  | Additions |  |  | Impairment |  |  | Accumulated Amortization |  |  | Foreign Currency Translation |  |  | Net Carrying Amount |  |  | Weighted- Average Amortization Period |
Customer relationships and developed technology |  | $ | 1,310,000 |  |  | $ | — |  |  | $ | — |  |  | $ | (739,476 | ) |  | $ | 103,454 |  |  | $ | 673,978 |  |  |  | 8.0 years |
In-process research and development |  |  | 1,340,000 |  |  |  | — |  |  |  | (654,961 | ) |  |  | (270,687 | ) |  |  | 99,925 |  |  |  | 514,277 |  |  |  | Indefinite |
Trade name |  |  | 310,000 |  |  |  | — |  |  |  | — |  |  |  | (91,073 | ) |  |  | 20,904 |  |  |  | 239,831 |  |  |  | 15.0 years |
Patents |  |  | 979,612 |  |  |  | 64,000 |  |  |  | — |  |  |  | (753,433 | ) |  |  | — |  |  |  | 290,179 |  |  |  | 16.0 years |
Total other intangible assets |  | $ | 3,939,612 |  |  | $ | 64,000 |  |  | $ | (654,961 | ) |  | $ | (1,854,669 | ) |  | $ | 224,283 |  |  | $ | 1,718,265 |  |  |  | 12.2 years |
Amortization expense was approximately $66,000 in the first quarter of 2013. The expected future annual amortization expense for each of the next five years based on current balances of our intangible assets is approximately as follows:
For the year ending December 31: |  |  |  |
2013 |  | $ | 276,000 |
2014 |  | $ | 268,000 |
2015 |  | $ | 268,000 |
2016 |  | $ | 262,000 |
2017 |  | $ | 240,000 |

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13854-109267 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=14024403&loc=d3e13816-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration