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

Note 4 - Property and Equipment

v2.4.0.6
Note 4 - Property and Equipment
12 Months Ended
Dec. 31, 2012
Property, Plant and Equipment Disclosure [Text Block]
4.   Property and Equipment

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

   
2012
   
2011
 
             
Equipment
  $ 1,044,969     $ 934,253  
Furniture and fixtures
    105,376       106,054  
Leasehold improvements
    157,236       157,236  
Computer equipment and software
    114,786       101,482  
Loaned systems
    1,063,777       723,975  
      2,486,144       2,023,000  
Less accumulated depreciation and amortization
    (1,199,029 )     (804,170 )
Total property and equipment, net
  $ 1,287,115     $ 1,218,830  

Depreciation and amortization expense for the years ended December 31, 2012, 2011, and 2010 was $­­­­398,970, $336,885, and $246,331, respectively.

The Company may loan the reusable components of a ClearPoint system to a customer. Any such customer can then use the loaned ClearPoint system to perform procedures using ClearPoint disposable products which are purchased from the Company. Accordingly, the $1,063,777 and $723,975 of loaned systems at December 31, 2012 and 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 December 31, 2012 and 2011, accumulated depreciation on loaned systems was $242,132 and $73,846, respectively.