Property and Equipment

6 Months Ended

Jun. 30, 2013

Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract]



	(in thousands)
	June 30, 2013			December 31, 2012
Land, buildings and improvements	$	4,209		$	4,209
Furniture, fixtures, and equipment	4,711			4,662
Leasehold improvements	85			85

Total property and equipment	9,005			8,956
Less: accumulated depreciation and amortization	(4,014		)	(3,664		)

Property and equipment, net	$	4,991		$	5,292

Property and equipment are recorded at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the respective assets, ranging from five to thirty-nine years.

Construction in progress consists of funds used for the construction and installation of property and equipment within the Company's New Brunswick, NJ facility. As of June 30, 2013, construction in progress was $7,065,000 as compared to $6,580,000 as of December 31, 2012. The Company capitalized $90,000 as of June 30, 2013 as interest charges, as compared to $85,000 as of December 31, 2012, related to the construction in progress.

The Company owns and operates a 43,000 sq. ft. FDA approved facility in New Brunswick, NJ that produces Alferon® and Ampligen®. In December 2011, our Board of Directors (the “Board”) reevaluated the facility enhancement project to focus on upgrading the facility to provide for a high volume, more cost effective manufacturing process for Alferon N Injection®, Alferon® LDO and Ampligen®. The facility enhancement project is in its final stage with construction complete. The validation phase of the Alferon® manufacturing project is currently underway as we prepare to undertake the Installation Qualification Process phase of the enhancement project. Approximately $7,709,000 has been spent to date through June 30, 2013, as compared to $7,051,000 spent on the project through December 31, 2012, of which $7,051,000 has been financed through a Margin Account with an effective interest rate of approximately 2.50% (see "Note 9: Margin Account Loan").

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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