5. In-Process Research and Development and Goodwill

The fair values of in-process research and development (IPR&D) acquired in business combinations are capitalized. The Company utilizes the "income method" which applies a probability weighting that considers the risk of development and commercialization to the estimated future net cash flows that are derived from projected sales revenues and estimated costs. These projections are based on factors such as relevant market size, patent protection, historical pricing of similar products and expected industry trends. The estimated future net cash flows are then discounted to the present value using a discount rate we consider appropriate. This analysis is performed for each IPR&D project independently. These assets are treated as indefinite-lived intangible assets until completion or abandonment of the projects, at which time the assets are amortized over the remaining useful life or written off, as appropriate. IPR&D intangible assets which are determined to have a decline in their fair value are adjusted downward and an impairment loss is recognized in the Consolidated Statements of Operations. These are tested at least annually or when a triggering event occurs that could indicate a potential impairment.

Goodwill represents excess consideration in a business combination over the fair value of identifiable net assets acquired. Goodwill is not amortized, but is subject to impairment testing at least annually or when a triggering event occurs that could indicate a potential impairment. The Company determines whether goodwill may be impaired by comparing the fair value of the reporting unit (the Company has determined that it has only one reporting unit for this purpose, which includes Molecular Insight), calculated as the product of shares outstanding and the share price as of the end of a period, to its carrying value (for this purpose, the Company's Total stockholders' equity). No goodwill impairment has been recognized as of September 30, 2014 or 2013.

A third quarter review of our Onalta intangible asset resulted in a $560 impairment of the indefinite-lived balance and a $16 impairment of the finite-lived balance, with the corresponding impairment charges recorded in the Consolidated Statements of Operations.

The following table summarizes the activity related to the finite-lived intangible asset for the nine months ended September 30, 2014:

	Finite-lived intangible assets
Balance at January 1, 2014	$	19
Amortization expense		(3	)
Impairment		(16	)
Balance at September 30, 2014	$	-

The following table reflects, prior to the third quarter write-off, the components of the finite-lived intangible asset as of December 31, 2013:

As of December 31, 2013	Gross Amount		Accumulated Amortization		Net Carrying Value
Finite lived intangible assets	$	21	$	2	$	19
Total	$	21	$	2	$	19

The weighted-average remaining life of the finite-lived intangible assets was approximately five years at December 31, 2013.

Amortization expense was calculated on a straight-line basis over the estimated useful life of the asset. Amortization expense for the three and nine months ended September 30, 2014 was $1 and $3, respectively.

The following tables summarize the activity related to the Company's goodwill and indefinite lived IPR&D:

	Goodwill		IPR&D
Balance at January 1, 2014	$	7,702	$	31,360
Impairment		-		(560	)
Balance at September 30, 2014	$	7,702	$	30,800

	Goodwill		IPR&D
Balance at January 1, 2013	$	-	$	-
Increase related to acquisition		7,702		32,300
Balance at September 30, 2013	$	7,702	$	32,300