7. Goodwill

The carrying value of goodwill was $0.5 million at December 31, 2011 and January 1, 2011. Change in goodwill for the year ended December 31, 2011 is presented in the following table (in thousands):


	FY 2011 December 31, 2011		FY 2010 January 1, 2011
Balance, beginning of period	$	473	$	0
Goodwill as a result of acquisition		60		473

Balance, end of period	$	533	$	473

The change in goodwill during fiscal year 2011 was due to the acquisition of Ocunetics, and the change in goodwill during fiscal year 2010 was due to the acquisition of RetinaLabs.

Goodwill is tested for impairment at least annually or whenever there is a change in circumstances that indicates the carrying value of these assets may be impaired. The determination of whether any potential impairment of goodwill exists is based upon a two-step impairment test performed in accordance with ASC 350, Intangibles – Goodwill and Other. There was no impairment of goodwill recognized during fiscal year 2011 and fiscal 2010.