PREMIER EXHIBITIONS, INC. - FORM 10-Q - XML - IDEA: XBRL DOCUMENT - July 13, 2012

4. Assets Related to 2010 Expedition to Titanic Wreck Site

During August and September 2010, our wholly owned subsidiary RMST, as Salvor-In-Possession of the RMS Titanic (the “Titanic”) and its wreck site, conducted an expedition to the Titanic wreck site.

We have capitalized $4.5 million of costs related to the expedition, discussed in more detail below, which have been allocated to specific assets as reflected in the following table (in thousands):

Costs associated with the expedition web point of presence are depreciated on a straight-line basis, using a three year useful life. Depreciation expense related to the web point of presence totaled $26 thousand for the three months ended May 31, 2012 and 2011.

The Company recorded an amortization charge of $31 thousand for the 2D documentary in the three months ended May 31, 2012, as calculated over a five-year life, based on the methodology outlined in Accounting Standards Codification (“ASC”) 926 “Entertainment – Films” (“ASC 926”), as the Company recognized $50,000 in 2D licensing revenue during the period. No amortization was recorded in the three months ended May 31, 2011 as the Company did not receive any 2D licensing revenue during this period. The 3D exhibitry was placed in service in April 2012 and depreciation of $28 thousand was recorded in the three months ended May 31, 2012.

The 3D film and gaming application assets have not been placed in service and, therefore, no associated amortization or depreciation has been recorded for these assets.

The web point of presence and 3D exhibitry assets are included in Property and equipment on the Condensed Consolidated Balance Sheets. The 3D film, 2D documentary, and gaming assets are included in Film and gaming assets on the Condensed Consolidated Balance Sheets.