Annual report pursuant to Section 13 and 15(d)

6. Long-Lived Assets

6. Long-Lived Assets

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

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.