MBRX » Topics » Property and Equipment

These excerpts taken from the MBRX 10-K filed Mar 31, 2009.

Property and Equipment

Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method and depending on asset classification, over a period of three to five years. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, whichever is shorter.

Property and Equipment

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method and depending on asset
classification, over a period of three to five years. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, whichever is shorter.

FACE="Times New Roman" SIZE="2">Impairment of Long-Lived Assets

The Company assesses potential impairment to its long-lived
assets in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, when there is evidence that events or changes in circumstances indicate that the carrying amount of an asset may not be recovered. In
connection with a corporate restructuring in November 2008 (Note 6), the Company evaluated its long-lived assets for impairment. The impact of the restructuring to long-lived assets was deemed immaterial.

STYLE="margin-top:18px;margin-bottom:0px">Revenue Recognition

The Company’s
revenue recognition policies are in accordance with the Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition, and Emerging Issues Task Force (“EITF”) Issue No. 00-21, Revenue Arrangements with
Multiple Deliverables
. The Company’s revenues are primarily related to collaborations with pharmaceutical companies. The Company’s agreements generally contain multiple elements, including access to proprietary technologies and
research and development services. Payments under collaborations are generally made in the form of up-front license fees, milestone payments and downstream royalties. All fees are

 


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nonrefundable. Upfront, nonrefundable fees under the Company’s collaborations and advance payments for sponsored research, which are in excess of
amounts earned are classified as deferred revenue and are recognized as income over the period of performance obligation. Nonrefundable upfront fees, which do not require the Company’s continuing involvement, or which do not contain future
performance obligations, are recognized when received.

Amounts received for sponsored research funding are recognized as revenues as the
services are performed. These agreements are on a best-efforts basis and do not require scientific achievement as a performance obligation and provide for payment to be made when costs are incurred or the services are performed.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">Revenue from milestones is recognized when earned, provided that (i) the milestone event is substantive and its achievability was not reasonably
assured at the inception of the agreement, and (ii) collaborator funding (if any) of the Company’s performance obligations after the milestone achievement will continue at a level comparable to before the milestone achievement. If both of
these criteria are not met, the milestone payment is recognized as revenue over the remaining minimum period of the Company’s performance obligations under the agreement.

FACE="Times New Roman" SIZE="2">Research and Development

All costs of research and development, including those incurred in
relation to the Company’s collaborative agreements, are expensed in the period incurred. Research and development costs primarily consist of salaries and related expenses for personnel, stock-based compensation expense, outside service
providers, facilities costs, fees paid to consultants, professional services, travel costs, dues and subscriptions, depreciation and materials used in clinical trials and research and development. The Company reviews and accrues clinical trials
expenses based on work performed, which relies on estimates of total costs incurred based on completion of patient studies and other events. The Company follows this method since reasonably dependable estimates of the costs applicable to various
stages of a research agreement or clinical trial can be made. Accrued clinical development costs are subject to revisions as trials progress to completion. Revisions are charged to expense in the period in which the facts that give rise to the
revision become known.

Property and Equipment

Property and equipment consisted of the following (in thousands):

 

     December 31,  
     2008     2007  

Laboratory equipment

   $ 9,250     $ 8,972  

Computers and electronics

     2,186       1,903  

Leasehold improvements

     1,401       1,356  

Office furniture and fixtures

     624       600  

Construction in progress

     —         160  
                
     13,461       12,991  

Less: accumulated depreciation and amortization

     (8,682 )     (6,635 )
                
   $ 4,779     $ 6,356  
                

Depreciation and amortization expense, which include assets held under capital leases, was $2.1 million, $2.0 million and $1.6 million for the years ended December 31, 2008, 2007 and 2006, respectively. Assets held

 

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under capital leases were approximately $98,000 at December 31, 2008 and 2007, and accumulated depreciation was approximately $83,000 and $60,000 at December 31, 2008 and 2007, respectively. The balance of capital leases and equipment loans totaled approximately $3.9 million and $6.0 million at December 31, 2008 and 2007, respectively.

The Company recorded $55,000 of asset disposals resulting in a loss of $29,000 for the twelve months ended December 31, 2008. The Company recorded $153,000 in loss on disposals for the twelve months ended December 31, 2007 and $29,000 for the twelve months ended December 31, 2006.

Property and Equipment

STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%">Property and equipment consisted of the following (in thousands):

 









































































































































   December 31, 
   2008  2007 

Laboratory equipment

  $9,250  $8,972 

Computers and electronics

   2,186   1,903 

Leasehold improvements

   1,401   1,356 

Office furniture and fixtures

   624   600 

Construction in progress

   —     160 
         
   13,461   12,991 

Less: accumulated depreciation and amortization

   (8,682)  (6,635)
         
  $4,779  $6,356 
         

Depreciation and amortization expense, which include assets held under capital leases, was
$2.1 million, $2.0 million and $1.6 million for the years ended December 31, 2008, 2007 and 2006, respectively. Assets held

 


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under capital leases were approximately $98,000 at December 31, 2008 and 2007, and accumulated depreciation was approximately $83,000 and $60,000 at
December 31, 2008 and 2007, respectively. The balance of capital leases and equipment loans totaled approximately $3.9 million and $6.0 million at December 31, 2008 and 2007, respectively.

STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%">The Company recorded $55,000 of asset disposals resulting in a loss of $29,000 for the twelve months ended December 31, 2008. The Company
recorded $153,000 in loss on disposals for the twelve months ended December 31, 2007 and $29,000 for the twelve months ended December 31, 2006.

SIZE="2">Accrued Liabilities and Accrued Compensation

Accrued liabilities and accrued compensation consisted of the following
(in thousands):

 






















































































































   December 31,
   2008  2007

Accrued development expenses

  $1,244  $3,241

Accrued legal and patent fees

   73   216

Other accrued liabilities

   481   675
        
  $1,798  $4,132
        

Accrued employee benefits

  $1,849  $1,914

Accrued restructuring expenses

   582   —  

Accrued bonuses

   8   1,267
        
  $2,439  $3,181
        
These excerpts taken from the MBRX 10-K filed Mar 17, 2008.

Property and Equipment

        Property and equipment consisted of the following (in thousands):

 
  December 31,
 
 
  2007
  2006
 
Laboratory equipment   $ 8,972   $ 9,849  
Computers and electronics     1,903     3,117  
Leasehold improvements     1,356     1,120  
Office furniture and fixtures     600     1,197  
Construction in progress     160     150  
   
 
 
      12,991     15,433  
Less: accumulated depreciation and amortization     (6,635 )   (9,170 )
   
 
 
    $ 6,356   $ 6,263  
   
 
 

        Depreciation and amortization expense, which include assets held under capital leases, was $2.0 million, $1.6 million and $910,000 for the years ended December 31, 2007, 2006 and 2005, respectively. Assets held under capital leases and equipment loans totaled approximately $6.0 million and $5.8 million at December 31, 2007 and 2006, respectively.

        The Company recorded $4.7 million of asset disposals resulting in a loss of $153,000 for the twelve months ended December 31, 2007. The Company recorded $29,000 in loss on disposals for the twelve months ended December 31, 2006 and none for the twelve months ended December 31, 2005.

Property and Equipment



        Property and equipment consisted of the following (in thousands):



























































































































 
 December 31,
 
 
 2007
 2006
 
Laboratory equipment $8,972 $9,849 
Computers and electronics  1,903  3,117 
Leasehold improvements  1,356  1,120 
Office furniture and fixtures  600  1,197 
Construction in progress  160  150 
  
 
 
   12,991  15,433 
Less: accumulated depreciation and amortization  (6,635) (9,170)
  
 
 
  $6,356 $6,263 
  
 
 




        Depreciation
and amortization expense, which include assets held under capital leases, was $2.0 million, $1.6 million and $910,000 for the years ended December 31,
2007, 2006 and 2005, respectively. Assets held under capital leases and equipment loans totaled approximately $6.0 million and $5.8 million at December 31, 2007 and 2006,
respectively.



        The
Company recorded $4.7 million of asset disposals resulting in a loss of $153,000 for the twelve months ended December 31, 2007. The Company recorded $29,000 in loss on
disposals for the twelve months ended December 31, 2006 and none for the twelve months ended December 31, 2005.



This excerpt taken from the MBRX 10-K filed Mar 13, 2007.

Property and Equipment

Property and equipment is carried at cost less accumulated depreciation. Depreciation is computed on the straight-line method and depending on asset classification, over a period of three to five years. Leasehold improvements are amortized over the estimated useful life of the asset or the lease term, whichever is shorter.

Property and equipment consisted of the following (in thousands):

 

 

December 31,

 

 

 

2006

 

2005

 

Laboratory equipment

 

$

9,849

 

$

7,561

 

Computers and electronics

 

3,117

 

2,322

 

Office furniture and fixtures

 

1,197

 

987

 

Leasehold improvements

 

1,120

 

943

 

Construction in progress

 

150

 

456

 

 

 

15,433

 

12,269

 

Less: accumulated depreciation and amortization

 

(9,170

)

(7,605

)

 

 

$

6,263

 

$

4,664

 

 

Depreciation and amortization expenses, which include assets held under capital leases, were $1.6 million, $910,000 and $699,000 for the years ended December 31, 2006, 2005 and 2004, respectively. Assets held under capital leases and equipment loans totaled approximately $5.8 million and $3.2 million at December 31, 2006 and 2005, respectively. The related accumulated amortization was approximately $4.0 million and $2.4 million at December 31, 2006 and 2005, respectively. Maintenance and repairs are charged to operations as incurred.

This excerpt taken from the MBRX 10-K filed Mar 23, 2006.

3.             Property and Equipment

 

Property and equipment consisted of the following (in thousands):

 

 

 

December 31,

 

 

 

2005

 

2004

 

Laboratory equipment

 

$

7,561

 

$

6,420

 

Computers and electronics

 

2,322

 

2,200

 

Office furniture and fixtures

 

987

 

643

 

Leasehold improvements

 

943

 

145

 

Construction in progress

 

456

 

66

 

 

 

12,269

 

9,474

 

Less: accumulated depreciation and amortization

 

(7,605

)

(7,120

)

 

 

$

4,664

 

$

2,354

 

 

Depreciation and amortization expenses, which include assets held under capital leases, were $910,000, $699,000 and $564,000 for the years ended December 31, 2005, 2004 and 2003, respectively. Assets held under capital leases totaled approximately $4.5 million and $4.0 million at December 31, 2005 and 2004, respectively. The related accumulated amortization was approximately $2.4 million and $2.0 million at December 31, 2005 and 2004, respectively.

 

This excerpt taken from the MBRX 10-K filed Mar 31, 2005.

3.     Property and Equipment

        Property and equipment consisted of the following (in thousands):

 
  December 31,
 
 
  2004
  2003
 
Laboratory equipment   $ 6,420   $ 5,357  
Computers and electronics     2,200     2,013  
Office furniture and fixtures     643     633  
Leasehold improvements     145     144  
Construction in progress     66      
   
 
 
      9,474     8,147  
Less: accumulated depreciation and amortization     (7,120 )   (6,420 )
   
 
 
    $ 2,354   $ 1,727  
   
 
 

        Depreciation and amortization expenses, which include assets held under capital leases, were $699,000, $564,000, and $424,000 for the years ended December 31, 2004, 2003 and 2002, respectively. Assets held under capital leases totaled approximately $4.0 million and $2.7 million at December 31, 2004 and 2003, respectively. The related accumulated amortization was approximately $2.0 million and $1.1 million at December 31, 2004 and 2003, respectively.

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4.     Accrued Liabilities

        Accrued liabilities consisted of the following (in thousands):

 
  December 31,
 
  2004
  2003
Accrued employee benefits   $ 1,077   $ 905
Bonus accrual     654     554
Accrued development expenses     610     346
Accrued legal and patent fees     286     431
Other accrued liabilities     208     266
   
 
    $ 2,835   $ 2,502
   
 
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