Quarterly report pursuant to Section 13 or 15(d)

DEFINITE-LIFE INTANGIBLE ASSETS

v2.4.0.8
DEFINITE-LIFE INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2013
DEFINITE-LIFE INTANGIBLE ASSETS  
DEFINITE-LIFE INTANGIBLE ASSETS

NOTE 4 - DEFINITE-LIFE INTANGIBLE ASSETS

 

Definite-life intangible assets at September 30, 2013 and December 31, 2012 consist of the following:

 

 

 

 

 

 

 

September 30, 2013

 

December 31, 2012

 

 

(Unaudited)

 

 

 

 

 

 

 

Pending patents acquired

$

1,405,872

$

-

Patent applications pending

 

-

 

14,501

Less:  Accumulated amortization

 

(14,501)

 

(8,267)

 

 

 

 

 

 

$

1,391,281

$

6,234

 

 

On August 19, 2013, the Company acquired assets from Essex Angel Capital (Note 10) for a total of $1,491,281.  $100,000 of the purchase price was allocated to Property and Equipment, and $1,391,281 was allocated to Defined-life intangible assets. The Company’s definite-life intangible assets are amortized, upon being placed in service, over the estimated useful lives of the assets, with no residual value. Amortization expense for the nine months ended September 30, 2013 and 2012 were $6,234 and $726, respectively.   As of September 30, 2013, the Company’s management has decided to take an impairment charge of $6,234 representing the unamortized basis of the patents related to the creation and production of its product, ProAlgaZyme which is no longer producing revenue.