Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 8: INTANGIBLE ASSETS

 

Intangible assets consisted of the following:

 

    December 31,     December 31,  
    2017     2016  
Patents   $ 120,000     $ 639,000  
Software     113,540       113,540  
Intangible assets     233,540       752,540  
Less: accumulated amortization     (157,854 )     (112,100 )
Total intangible assets, net   $ 75,686     $ 640,440  

 

Intangible assets amounted to $75,686 and $640,440 as of December 31, 2017, and December 31, 2016, respectively, and consisted of patents and software acquired. The amortization period for the purchased software is three years. Amortization expense related to software for the years ended December 31, 2017 and 2016 was $32,754 and $28,806, respectively.

 

Patent assets are amortized based on their determined useful life. We continuously evaluate and reprioritize our research and development pipeline based on the most recent business strategies, and as a result have delayed plans to develop and invest further in Acueity patents and technologies. In 2017 and 2016, we evaluated the Acueity assets and determined that the assets were impaired for the years ended December 31, 2017 and 2016 and we reduced the net carrying value of the patents by $461,715 and $718,970.

 

The amortization period of the remaining patents is 10 years. Amortization expense related to patents was $70,284 and $149,015 for the years ended December 31, 2017 and 2016, respectively.

 

Future estimated amortization expenses as of December 31, 2017, for the five succeeding years and thereafter is as follows:

 

Years Ending December 31,   Amounts  
2018   $ 25,353  
2019     13,000  
2020     13,000  
2021     13,000  
2022     11,333  
    $ 75,686