Notes to Consolidated Financial Statements
(CON TINUE D)
revenues of US $108,963 and US $311,004, respectively, and
net income of US $10,070 and a net loss of US $2,797,950,
respectively. The following table summarizes the major categories
of assets and liabilities being discontinued, as of
December 31:
2010 2009
Cash $ 597 $ 712
Accounts receivable - 46,797
Prepaid expenses - 413
Inventory - 416,778
Total current assets 597 464,700
Accounts payable 1,433 269,373
Accrued expenses 595 283,392
Total current liabilities $ 2,028 $552,765
(4) Accounts Receivable
Accounts receivable as of December 31, 2010 and 2009 consist
of:
2010 2009
Trade receivables, net of allowance
of US $0 (2009: US $90,893) $ 776,989 $ 524,967
Interest receivable - 65
Other receivables 14,434 3,028
$ 791,423 $ 528,060
(5) Inventori es
Inventories as of December 31, 2010 and 2009 consist of:
2010 2009
Raw materials $ 81,399 $ 188,846
Work in progress 260,015 9,880
Finished goods - 25,278
$ 341,414 $ 224,004
The application of lower of cost or market to the 2010 and
2009 inventories resulted in write-offs of US $149,000 and
US $1.7 million, respectively. Inventory classification is determined
by the stage of the manufacturing process the specific
inventory item represents.
(6) Propert y and Equip ment
Property and equipment as of December 31, 2010 and 2009
consist of:
2010 2009
Leasehold improvements $ 819,863 $ 914,015
Furniture, fixtures and equipment 697,760 707,592
Computer equipment and software 487,014 443,907
2,004,637 2,065,514
Less: Accumulated depreciation (1,378,240) (1,230,878)
$ 626,397 $ 834,636
Depreciation and amortization expense of US $238,676 (2009:
US $453,595) is reflected in general and administrative expense
in the accompanying consolidated statements of operations.
(7) Accrued liabi liti es
Accrued liabilities as of December 31, 2010 and 2009 consist of:
2010 2009
Accrued compensation $ 354,793 $ 747,572
Professional fees 526,601 641,306
Other 2,705 3,280
$ 884,099 $ 1,392,158
(8) Leases
During the year ended December 31, 2006, the Company
entered into a capital lease for certain equipment that
expired in September 2010. At December 31, 2010, the gross
amount and related gross amortization of the equipment
recorded under capital lease amounted to US $0 (2009:
US $16,601) and US $16,601 (2009: US $20,339), respectively.
Amortization of assets under the capital lease is included
in general and administrative expenses of the consolidated
statements of operations.
The Company has an operating lease for laboratory space that
expires March 31, 2012, but has a 90 day option to terminate
prior to that date. The Company exercised its option to terminate
the lease early, with the termination date being June 30,
2011. Rental expense for operating leases included in general
and administrative expenses in the consolidated statements
of operations during the year ended December 31, 2010 was
US $88,375 (2009: US $122,680).
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