The Company’s intangible assets consist of intellectual property, principally patents. The patents are being amortized over their remaining lives, which are 9 years and 16 years.

During the year ended December 31, 2014 and 2013, the Company recognized $95,037 and $114,879 in amortization expense respectively. No impairment losses were recognized during the year ended December 31, 2014. During the year ended December 31, 2013 the Company recognized impairment losses of $350,000.

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

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, 2014. The result of this review confirmed that the fair value of the patents exceeded their carrying value as of December 31, 2014.