Annual report pursuant to Section 13 and 15(d)

Intangible Assets

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Intangible Assets
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Note 5 - Intangible Assets

The Company’s intangible assets consist of intellectual property and patents, mainly acquired in the acquisition of ValiBio SA. The patents and intellectual property are being amortized over the assets’ estimated useful lives, which range from 8 to 20 years.

 

                December 31,  
                2017  
          Accumulated     Net Carrying  
    Cost     Amortization     Value  
    $     $     $  
                   
Patents     1,213,314       636,917       576,397  
                         

 

                   
                December 31,  
                2016  
          Accumulated     Net Carrying  
    Cost     Amortization     Value  
    $     $     $  
                   
Patents     1,085,133       482,940       602,193  
                         

 

During the years ended December 31, 2017 and 2016, the Company recognized $87,994 and $86,462, respectively, in amortization expense. No impairment losses were recognized during the years ended December 31, 2017 and December 31, 2016.

 

The Company amortizes the long-lived assets on a straight-line basis with terms of 8 to 20 years. The annual estimated amortization schedule over the next five years is as follows:

 

2018   $ 92,610  
2019   $ 92,610  
2020   $ 92,610  
2021   $ 92,610  
2022   $ 92,610  
Thereafter   $ 113,347  
         
Total   $ 576,397  

 

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, 2017. The result of this review confirmed that the ongoing value of the patents was not impaired as of December 31, 2017.