Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
3 Months Ended
Mar. 31, 2014
Notes to Financial Statements  
Note 4. Intangible Assets

The Company’s intangible assets consist of intellectual property, principally patents, acquired in the acquisition of ValiBio SA. The patents are being amortized over their remaining lives, which are 9 years and 17 years.

 

 
 
 
 
 
 
 
 
 
 
 
Cost
 
 
 
 
 
 
 
 
 
 
Accumulated
Amortization
 
 
 
 
 
 
 
 
December 31,
2013
Net Carrying
Value
 
 
 
 
    $     $   $  
                         
Patents     1,314,559       312,516       1,002,043  
                         
      1,314,559       312,516       1,002,043  

                         
                    March 31,  
                      2014  
            Accumulated     Net Carrying  
    Cost     Amortization     Value  
    $     $     $  
                         
Patents     1,313,334       336,728       976,606  
                         
      1,313,334       336,728       976,606  

 

During the three month period ended March 31, 2014, and the year ended December 31, 2013, the Company recognized $24,516 and $114,879 in amortization expense respectively. During the year ended December 31, 2013 the Company also recognized impairment losses of $350,000. No impairment losses were recognized during the three month period ended March 31, 2014.

 

The Company amortizes the long-lived assets 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:

 

2014 - remaining   $ 73,548  
2015   $ 98,064  
2016   $ 98,064  
2017   $ 98,064  
2018   $ 98,064  

 

The Company periodically reviews its long lived assets to ensure that their carrying value does not exceed their fair market value. The Company carried out such a review in accordance with ASC 360 as of December 31, 2013. The result of this review confirmed that the fair value of the patents exceeded their carrying value as of December 31, 2013.