PROPERTY AND EQUIPMENT

9 Months Ended

Sep. 30, 2012

PROPERTY AND EQUIPMENT [Abstract]

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Our property and equipment consist of the following:

	September 30, 2012			December 31, 2011
Land	$	-		$	410,728
Buildings and improvements, leasehold improvements		2,363			2,278,264
Equipment		2,103,448			2,339,853
Furniture		5,333			250,751
Software		801,498			801,498
Total		2,912,642			6,081,094
Less accumulated depreciation and amortization		(2,818,401	)		(3,714,914	)
Net property and equipment	$	94,241		$	2,366,180

On September 28, 2012, we sold our principal office, manufacturing, storage, and primary research and development facility in Tucson, Arizona for $1.46 million. In the quarter ended June 30, 2012, we had recognized a $708,000 impairment charge in anticipation of the sale of the building and contents. In the sale transaction, we disposed of assets with a net book value of $1.386 million, after the impairment charge, and incurred transaction costs of $86,000. The loss on the sale of the building and contents was $12,000.

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