PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2013

NOTE 3 – PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

	Estimated Useful Lives	June 30, 2013		December 31, 2012
Machinery and equipment	5 years	$	682,000	$	682,000
Furniture, fixtures and leasehold improvements	3-5 years		88,000		88,000
Software	3-5 years		57,000		57,000
			827,000		827,000
Accumulated depreciation and amortization			(563,000)		(495,000)
Property and equipment, net		$	264,000	$	332,000

Depreciation of fixed assets utilized in research and development activities is included in research and development costs and expenses. All other depreciation is included in selling, general and administrative costs and expenses. Depreciation and amortization expense was $33,000 and $68,000, respectively for the three and six months ended June 30, 2013, and was $42,000 and $84,000, respectively for the three and six months ended June 30, 2012.

- Definition

The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures.

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