PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2012

PROPERTY AND EQUIPMENT [Abstract]

PROPERTY AND EQUIPMENT

5. PROPERTY AND EQUIPMENT

Our property and equipment consist of the following:

	June 30, 2012			December 31, 2011
Land	$	-		$	410,728
Buildings and improvements, leasehold improvements		-			2,278,264
Equipment		2,303,235			2,339,853
Furniture		96,546			250,751
Software		801,498			801,498
Total		3,201,279			6,081,094
Less accumulated depreciation and amortization		(3,089,026	)		(3,714,914	)
Net property and equipment	$	112,253		$	2,366,180

We review long-lived assets, including intangible assets subject to amortization, for possible impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable.

We annually assess the recoverability of such long-lived assets by determining whether the amortization of the balances over their remaining lives can be recovered through undiscounted future operating cash flows. The amount of impairment, if any, is measured based on projected discounted future operating cash flows. The assessment of the recoverability of long-lived assets will be impacted if estimated future operating cash flows are not achieved. We will conduct an impairment test for property and equipment in October 2012. Based on a qualitative analysis as of June 30, 2012 we concluded that the carrying value of these assets is not expected to be recoverable through expected future operating cash flows and, accordingly, an impairment charge for $708,000 was posted. In July 2012, we entered into an agreement to sell our principal office, manufacturing, storage, and primary research and development facility in Tucson, Arizona for approximately $1.4 million and we reclassified the assets as held for sale.