Intangible assets activity is summarized as follows:

		June 30, 2012							December 31, 2011
	Weighted
	Average	Gross					Net		Gross					Net
	Amortization	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Lives	Value		Amortization			Value		Value		Amortization			Value
Intangible assets subject to amortization:
License-Shriners Hsp for Children & USF Research (a)	10 years	$	996,000	$	(537,833	)	$	458,167	$	996,000	$	(488,033	)	$	507,967
License - SaluMedica LLC Spine Repair (b)	10 years		2,399,000		(1,461,581	)		937,419		2,399,000		(1,313,573	)		1,085,427
License - Polyvinyl Alcohol Cryogel (c)	10 years		2,667,000		(1,135,091	)		1,531,909		2,667,000		(998,932	)		1,668,068
Customer Relationships (d)	14 years		3,520,000		(377,143	)		3,142,857		3,520,000		(251,429	)		3,268,571
Supplier Relationships (d)	14 years		241,000		(25,821	)		215,179		241,000		(17,215	)		223,785
Patents & Know-How (d)	14 years		5,530,000		(592,500	)		4,937,500		5,530,000		(395,000	)		5,135,000
Licenses/Permits (d)	3 years		13,000		(6,500	)		6,500		13,000		(4,333	)		8,667
			15,366,000		(4,136,469	)		11,229,531		15,366,000		(3,468,515	)		11,897,485
Intangible assets not subject to amortization:
Trade Names/Trademarks (d)	indefinite		1,008,000		-			1,008,000		1,008,000		-			1,008,000
In-process Research & Development-Liquid (d)	indefinite		2,160,000		-			2,160,000		2,160,000		-			2,160,000
In-process Research & Development-Other (d)	indefinite		25,000		-			25,000		25,000		-			25,000
		$	18,559,000	$	(4,136,469	)	$	14,422,531	$	18,559,000	$	(3,468,515	)	$	15,090,485

(a)

On January 29, 2007, the Company acquired a license from Shriners Hospitals for Children and University of South Florida Research Foundation, Inc. The acquisition price of this license was a one-time fee of $100,000 and 1,120,000 shares of common stock valued at $896,000 (based upon the estimated fair value of the common stock on the transaction date). Within 30 days after the receipt by the Company of approval by the FDA allowing the sale of the first licensed product, the Company is required to pay an additional $200,000 to the licensor. Due to its contingent nature, this amount is not recorded as a liability. The Company will also be required to pay a royalty of 3% on all commercial sales revenue from the licensed products.

(b)

License from SaluMedica, LLC (SaluMedica) for the use of certain developed technologies related to spine repair. This license was acquired through the acquisition of SpineMedica Corp.

(c)

On March 31, 2008, the Company entered into a license agreement for the use of certain developed technologies related to surgical sheets made of polyvinyl alcohol cryogel. The acquisition price of the asset was 400,000 shares of common stock valued at $2,596,000 (based upon the closing price of the common stock on the transaction date). The agreement also provides for the issuance of an additional 600,000 shares upon the Company meeting certain milestones related to future sales. On December 31, 2009, the Company completed the sale of its first commercial product and met its first milestone under this agreement. As a result, the Company issued an additional 100,000 shares of common stock to the licensor valued at $71,000. At June 30, 2012 and 2011, there are no additional amounts accrued for this obligation due to its contingent nature.

(d)

On January 5, 2011, the Company acquired Surgical Biologics, LLC. As a result, the Company recorded intangible assets for customer and supplier relationships, patents and know-how, licenses/permits, trade names and trademarks and in-process research and development.