General form of registration statement for all companies including face-amount certificate companies

Property and Equipment

v2.4.0.6
Property and Equipment
 9 Months Ended 12 Months Ended
Sep. 30, 2012
Dec. 31, 2011
Property, Plant and Equipment Disclosure [Text Block]
4.     Property and Equipment

Property and equipment consist of the following as of:

   
September 30,
2012
   
December 31,
2011
 
             
Equipment
    1,017,634     $ 934,253  
Furniture and fixtures
    105,376       106,054  
Leasehold improvements
    157,236       157,236  
Computer equipment and software
    108,285       101,482  
Loaned systems
    990,106       723,975  
      2,378,637       2,023,000  
Less accumulated depreciation and amortization
    (1,096,907 )     (804,170 )
Total property and equipment, net
    1,281,730     $ 1,218,830  

Depreciation and amortization expense for property and equipment for the nine months ended September 30, 2012 and 2011 was $296,487 and $236,536, respectively. The Company may loan the reusable components of a ClearPoint system to a customer to perform procedures using ClearPoint disposable products which are purchased from the Company. Accordingly, the $990,106 and $723,975 of loaned systems at September 30, 2012 and December 31, 2011, respectively, represent the historical cost of ClearPoint reusable components transferred from inventory to property and equipment. Depreciation on loaned ClearPoint systems is computed using the straight-line method based on an estimated useful life of five years. At September 30, 2012 and December 31, 2011, accumulated depreciation on loaned systems was $197,439 and $73,846, respectively.

4. Property and Equipment

Property and equipment consist of the following as of December 31:

 
  
2011
   
2010
 
Equipment
  
$
934,253
  
 
$
906,485
  
Furniture and fixtures
  
 
106,054
  
   
106,053
  
Leasehold improvements
  
 
157,236
  
   
157,236
  
Computer equipment and software
  
 
101,482
  
   
103,150
  
Loaned systems
  
 
723,975
  
   
173,870
  
 
  
 
2,023,000
  
   
1,446,794
  
Less accumulated depreciation and amortization
  
 
(804,170
) 
   
(467,285
) 
Total property and equipment, net
  
$
1,218,830
  
 
$
979,509
  

Depreciation and amortization expense for the years ended December 31, 2011, 2010, and 2009 was $336,885, $246,331, and $150,710, respectively.

The Company may loan the reusable components of a ClearPoint system to a customer. Any such customer uses the loaned ClearPoint system to perform procedures using ClearPoint disposable products which are purchased from the Company. Accordingly, the $723,975 and $173,870 of loaned systems at December 31, 2011 and 2010, respectively, represent the historical cost of ClearPoint reusable components transferred from inventory to property and equipment. Depreciation on loaned ClearPoint systems is computed using the straight-line method based on an estimated useful life of five years. At December 31, 2011, accumulated depreciation on loaned systems was $73,846; at December 31, 2010 no depreciation expense had been recorded on loaned systems as these systems had been shipped to customers, but were not yet installed.