Quarterly report pursuant to sections 13 or 15(d)

Note 4 - Property and Equipment

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Note 4 - Property and Equipment
9 Months Ended
Sep. 30, 2012
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.