Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 6: INTANGIBLE ASSETS

 

Intangible assets consisted of the following:

 

    June 30,
2017
    December 31,
2016
 
Patents   $ 639,000     $ 639,000  
Software     113,540       113,540  
Total intangible assets     752,540       752,540  
Less: Accumulated amortization     (166,857 )     (112,100 )
Total intangible assets, net   $ 585,683     $ 640,440  

 

Software amounted to $113,540 as of June 30, 2017 and December 31, 2016. The amortization period for the purchased software is 3 years. Amortization expense related to software for the three months ended June 30, 2017 and 2016 was $6,759 and $7,857, respectively, and was $19,614 and $15,714, for the six months ended June 30 2017 and 2016, respectively.

 

Patents amounted to $639,000 as of June 30, 2017 and December 31, 2016, and mainly consisted of patents acquired from Acueity on September 30, 2012 in an asset purchase transaction. Patent assets are amortized based on their determined useful life, and tested annually for impairment. The amortization period is from 7 to 12 years. Amortization expense related to patents was $17,571 and $37,254 for the three months ended June 30, 2017 and 2016, respectively and was $35,142 and $74,508 for the six months ended June 30, 2017 and 2016, respectively.

 

Future estimated amortization expenses as of June 30, 2017 for the five succeeding years is as follows:

 

For the years ending December 31,   Amounts  
2017 (includes the remainder of the year)   $ 48,282  
2018     73,433  
2019     70,285  
2020     70,285  
2021     70,285  
Thereafter     253,113  
    $ 585,683