Quarterly report pursuant to sections 13 or 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 4 – INTANGIBLE ASSETS

 

Intangible assets were acquired from the acquisition by the Company’s wholly owned subsidiary, Sampo and consisted of the following:

 

   

March 31,

2013

   

December 31,

2012

 
                 
Patent rights   $ 500,925     $ 500,925  
Accumulated amortization     (26,320)       (8,773)  
Intangible assets, net   $ 474,605     $ 492,152  

 

The life of the patent rights shall be based on the expiration dates of the patent rights as follows:

 

US Patent 6,161,149 expires March 13, 2018 or estimated useful life of 5.33 years;

US Patent 6,772,229 expires December 1, 2019 or estimated useful life of 7.05 years; and

US Patent 8,015,495 expires November 16, 2023 or estimated useful life of 11.01 years.

 

The patent rights are being amortized on a straight-line basis over its respective estimated useful lives. The Company assesses fair market value for any impairment to the carrying values.  As of March 31, 2013 and December 31, 2012 management concluded that there was no impairment to the acquired assets.

 

The weighted average amortization period on total is approximately 7.80 years. Amortization expense for the three months ended March 31, 2013 and 2012 was $17,547 and $0, respectively. Future amortization of intangible assets, net is as follows:

 

2013     52,639  
2014     70,186  
2015     70,186  
2016     70,186  
2017 and thereafter     211,408  
Total   $ 474,605