Annual report pursuant to Section 13 and 15(d)

Intangible Assets

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Intangible Assets
 12 Months Ended
Dec. 31, 2012
Intangible Assets  
Note 6. Intangible Assets

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,  
                2011  
          Accumulated     Net Carrying  
    Cost     Amortization     Value  
    $     $     $  
                   
Patents     1,642,195       119,384       1,522,811  
                         
      1,642,195       119,384       1,522,811  

 

                   
                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  

 

During the year ended December 31, 2012 and 2011, the Company recognized $112,056 and $107,642 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 $ 112,507
2014 $ 112,507
2015 $ 112,507
2016 $ 112,507
2017 $ 112,507

 

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 December 31, 2012.