VolitionRx Ltd Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

Intangible Assets

3 Months Ended

Mar. 31, 2013

The Company’s intangible assets consist of intellectual property, principally patents, acquired in the acquisition of ValiBio SA (see Note 4). The patents are being amortized over their remaining lives, which are 12 years and 19 years.

					December 31,
					2012
			Accumulated		Net Carrying
	Cost		Amortization		Value
	$		$		$

Patents		1,666,346		236,108		1,430,238

		1,666,346		236,108		1,430,238

					March 31,
					2013
			Accumulated		Net Carrying
	Cost		Amortization		Value
	$		$		$

Patents		1,631,432		258,075		1,373,358

		1,631,432		258,075		1,373,358

During the three month period ended March 31, 2013, and the year ended December 31, 2012, the Company recognized $28,597 and $112,056 in amortization expense respectively.

The Company amortizes the long-lived asset on a straight line basis with terms ranging from 13 to 20 years. The annual estimated amortization schedule over the next five years is as follows:

2013	$	85,792
2014	$	114,389
2015	$	114,389
2016	$	114,389
2017	$	114,389

The Company periodically reviews its long lived assets to ensure that their carrying value does not exceed their fair market value. On September 11, 2011, the Company hired an independent specialist to value the patents based on a discounted cash flows model. The result of this report confirmed that the fair value of the patents exceeded their carrying value as of March 31, 2013.