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Assets Held for Sale
 6 Months Ended
Jun. 30, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Assets Held for Sale

Note 5. Assets held for sale

On May 27, 2016, we decided to terminate our Phase II Pathway Study in spinal cord injury following an in-depth review of data from the study and after obtaining the concurrence of the study’s Interim Analysis Data Monitoring Committee. While the results showed overall improvement in patients treated with our proprietary cells, the magnitude of the effect and the perceived trend of the effect over time did not justify continuing the study or exploring the variability in the initial patient observations, given the financial resources available to us.

Following this, on May 30, 2016, our Board of Directors approved a plan to wind down our current operations, having considered the decision to terminate the Pathway Study, our available strategic alternatives and our current cash position. As part of the wind down of our operations, we conducted a reduction of our work force impacting all of our remaining full-time employees, consisting of approximately 50 employees, termed our commercial lease agreements and exited our two facilities located in Newark and Sunnyvale, California, as of August 1, 2016. By way of an auction, we sold all of our tangible assets at our Newark facility in July 2016 and expect to receive approximately $800,000. In July 2016, the lease for our Sunnyvale facility was taken over by an unrelated company. As part of the lease transfer, the unrelated company acquired all of our tangible assets at this facility for $650,000. At June 30, 2016, we wrote down these assets to its realizable value and classified the expected proceeds from the sale of these assets as “Assets held for sale” in our Condensed Consolidated Balance Sheets. The table below summarizes these changes:

 

     June 30, 2016      December 31, 2015  

Building and improvements

    $ 3,608,588       $ 3,608,588   

Machinery and equipment

      8,545,637         8,530,203   

Furniture and fixtures

      338,259         338,259   
  

 

 

     

 

 

  
     12,492,484         12,477,050   

Less accumulated depreciation

      (7,709,748 )       (7,259,121 ) 

Less write-down

      (3,332,736 )       —     
  

 

 

     

 

 

  

Assets held for sale

    $ 1,450,000       $ 5,217,929   
  

 

 

     

 

 

  

Depreciation expense was approximately $177,000 for the three –month period ended June 30, 2016 and approximately $255,000 for the same period in 2015. Assets were held for sale effective the May 31, 2016 and are no longer depreciated.