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Intangible Assets
9 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

NOTE E — INTANGIBLE ASSETS

Intangible assets as of September 30, 2014 and December 31, 2013 consisted of the following (in thousands):

 

    

Weighted

Average
Amortization

Period

   September 30, 2014  
          COST      Accumulated
Amortization
     Net  

Customer Relationships

   156 months    $ 1,860       $ 33       $ 1,827   

Support Vector Machine (SVM) technology

   108 months    $ 500       $ 153       $ 347   

Laboratory developed test (LDT) technology

   164 months    $ 1,482       $ 270       $ 1,212   

Flow Cytometry and Cytogenetics technology

   202 months    $ 1,000       $ 150       $ 850   
     

 

 

    

 

 

    

 

 

 

Total

      $ 4,842       $ 606       $ 4,236   
     

 

 

    

 

 

    

 

 

 

 

    

Weighted

Average
Amortization

Period

   December 31, 2013  
          COST      Accumulated
Amortization
     Net  

Support Vector Machine (SVM) technology

   108 months    $ 500       $ 112       $ 388   

Laboratory developed test (LDT) technology

   164 months    $ 1,482       $ 188       $ 1,294   

Flow Cytometry and Cytogenetics technology

   202 months    $ 1,000       $ 105       $ 895   
     

 

 

    

 

 

    

 

 

 

Total

      $ 2,982       $ 405       $ 2,577   
     

 

 

    

 

 

    

 

 

 

We recorded approximately $89,000 and $56,000 in straight-line amortization expense of intangibles for the three months ended September 30, 2014 and 2013, respectively, and approximately $200,000 and $168,000 in straight-line amortization expense of intangibles for the nine months ended September 30, 2014 and 2013, respectively, as research and development and general and administrative expenses in the consolidated statement of operations. We will record the amortization of customer relationships as a general and administrative expense. We will continue to record the amortization of the Support Vector Machine (SVM) technology, the Laboratory developed tests (LDT) technology and the Flow Cytometry and Cytogenetics technology intangibles as a research and development expense until the time that we have products, services or cost savings directly attributable to these intangible assets that would require that it be recorded in cost of goods sold.

 

The estimated amortization expense related to amortizable intangible assets for each of the five succeeding fiscal years and thereafter as of September 30, 2014 is as follows (in thousands):

 

Year Ending December 31,

      

Remainder of 2014

   $ 92   

2015

     366   

2016

     366   

2017

     366   

2018

     366   

2019

     366   

Thereafter

     2,314   
  

 

 

 

Total

   $ 4,236