Notes to Consolidated Financial Statements (continued)
35
(5) Property and Equipment
P
roperty and equipment, net as of December 31, 2008 and 2007 consist of:
2008
2007
L
easehold improvements
$ 914,015
$ 746,683
Furniture, fixtures and equipment
707,592
618,982
C
omputer equipment and software
410,247
261,563
2,031,854
1,627,228
L
ess accumulated depreciation
(777,283
)
(297,665
)
$ 1,254,571
$1,329,563
(6) Accrued liabilities
A
ccrued liabilities as of December 31, 2008 and 2007 consist of:
2008
2007
A
ccrued compensation
$ 327,908
$1,395,842
P
rofessional fees
593,687
971,098
O
ther
14,202
463,077
$ 935,797
$2,830,017
(7) Leases
During the year ended December 31, 2006, the Company entered into a capital lease for certain equipment that expires in September 2010. At December 31, 2008, the gross amount and related gross amortization of the equipment recorded under capital lease amounted to US$36,940 (2007: US$55,402) and US$18,462 (2007: US$16,758), respectively. Amortization of assets under the capital lease is included with depreciation expense.
The Company has non-cancelable operating leases for office space and equipment that expires during April 2012. Rental expense for operating leases during the years ended December 2008 was US$111,348 (2007: US$10,020).
Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) and future minimum capital lease payments as of December 31, 2008 are:
C
apital
O
perating
leases
leases
Y
ear ending December 31
2009
$23,040
$111,348
2010
17,279
89,148
2011
—
66,948
2012
—
16,737
T
otal minimum lease payments
40,319
$284,181
L
ess estimated executor costs
—
N N N
et minimum lease payments
40,319
L
ess amount representing interest at 9.72%
3,379
P P
r
esent value of net minimum capital
lease payments
36,940
L
ess current installments of obligations
under capital leases
20,339
O
bligations under capital lease excluding
current installments
$16,601
(8) Related Party TrTransactions
(a) Research and Development Services from
Vanderbilt University
During the year ended December 31, 2008, the Company paid US$496,000 (2007: US$564,000) to Vanderbilt University (Vanderbilt), a shareholder, for the dedicated use of a laboratory and staff which houses the Company´s proprietary development platform. Such amounts are included in research and development costs in the consolidated statements of operations.
A
s of December 31, 2008, US$0 (2007: US$60,000) was payable to Vanderbilt under this arrangement. Such amounts are included in accrued liabilities.
(b) License Fee
O
n June 4, 2004, the Company entered into an agreement with Vanderbilt, a member of the Company, to acquire an exclusive license to undertake the development of business, technical, regulatory, and market strategies in order to make, have made, use, sell, offer to sell, license and improve and to grant sublicenses of
TyraTech, Inc. Annual Report 2008
