Intangible assets consisted of the following:

Intangible assets are comprised of patents with estimated useful lives ranging between approximately 1 to 11 years. Once placed in service, the Company will amortize the costs of intangible assets over their estimated useful lives on a straight-line basis.  For asset acquisitions, costs incurred to acquire patents, including legal costs, are also capitalized as long-lived assets and amortized on a straight-line basis with the associated patent. For acquisitions deemed to be a business combination, costs incurred to acquire patents are not capitalized. Amortization of patents is included in operating expenses as reflected in the accompanying consolidated statements of operations. The Company assesses fair market value for any impairment to the carrying values.  As of June 30, 2014 and December 31, 2013 management concluded that there was no impairment to the acquired assets.

Amortization expense for the three and six months ended June 30, 2014 and 2013 was $939,781 and $1,392,326, and $475,680 and $475,680, respectively. Future amortization of intangible assets, net is as follows:

As of June 30, 2014, the Company’s patent portfolios consists of 128 U.S. and foreign patents, five open patent applications and contract rights to 10 patents. During the second quarter of 2013, the Company began to generate revenue from its patent portfolio.  In the aggregate, the earliest date for expiration of a patent in the Company’s patent portfolio is past (the patent is expired, but patent rules allow for six year look-back for royalties), the median expiration date for patents in the Company’s portfolio is October 30, 2016, and the latest expiration date for a patent in any of the Company’s patent portfolios is July 18, 2024.  A summary of the Company’s patent portfolios is as follows: