Annual report pursuant to Section 13 and 15(d)

6. Long-Lived Assets

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6. Long-Lived Assets
12 Months Ended
Dec. 31, 2015
Property, Plant and Equipment [Abstract]  
Long-Lived Assets

Property and equipment at December 31, 2015 and 2014 consisted of the following:

 

   

December 31,

2015

   

December 31,

2014

 
Medical equipment   $ 991,903     $ 896,641  
Equipment     547,555       396,551  
Equipment under capital leases     5,663,332       4,024,449  
Furniture     560,400       333,316  
Leasehold improvements     1,760,125       1,665,501  
Vehicles     196,534       177,534  
Computer equipment     661,234       595,571  
Software     1,878,848       1,832,053  
      12,259,931       9,921,616  
Less accumulated depreciation     (5,111,636 )     (2,243,493 )
Property and equipment, net   $ 7,148,295     $ 7,678,123  

 

Depreciation of property and equipment was $2,717,651 and $1,481,313 for the years ended December 31, 2015 and 2014, respectively.

 

Intangible assets consisted of the following as of December 31, 2015 and 2014, respectively:

 

    As of December 31, 2015     As of December 31, 2014  
      Gross Carrying Amount       Accumulated
Amortization
      Net       Gross Carrying Amount       Accumulated
Amortization
      Net  
Definite lived intangible assets:                                                
Trade names and trademarks   $     $     $     $ 221,000     $ (8,095 )   $ 212,905  
Customer relationships                       205,000       (8,828 )     196,172  
Non-compete agreements                       19,000       (2,217 )     16,783  
                        445,000       (19,140 )     425,860  
Indefinite lived intangible assets:                                                
Clinical laboratory licenses                       4,010,613             4,010,613  
                                                 
Total intangible assets   $     $     $     $ 4,455,613     $ (19,140 )   $ 4,436,473  

 

Amortization expense was $32,199 and $19,140 for the years ended December 31, 2015 and 2014, respectively.

 

The Company’s management has performed a valuation of the identifiable intangible assets, including medical licenses at the date of acquisition. As a result, the Company recorded medical licenses acquired from all laboratory acquisitions in the amounts noted above. The medical licenses include licenses for Medicare and Medicaid, COLA Laboratory Accreditation, Clinical Laboratory Improvement Amendments (CLIA), and State of Florida (AHCA) Clinical Laboratory Licenses, and have indefinite lives. As such, there was no amortization of intangible assets for the years presented.

 

Management periodically reviews the valuation of long-lived assets for potential impairments. Management recognized an impairment loss on all goodwill and intangible assets as of December 31, 2015 totaling $20,143,320.