|6 Months Ended|
Jun. 30, 2017
NOTE 4 – INTANGIBLE ASSETS
Intangible assets include patents purchased and patents acquired in lieu of cash in licensing transactions. Patents purchased are recorded based at their acquisition cost and patents acquired in lieu of cash are recorded at their fair market value. Intangible assets consisted of the following:
Intangible assets are comprised of patents with estimated useful lives between approximately 1 to 16 years. Once placed in service, the Company will amortize the costs of intangible assets over their estimated useful lives on a straight-line basis. During the three and six months ended June 30, 2017, respectively, the Company capitalized a total of $0 and $0 in patent acquisition costs and during the three and six months ended June 30, 2016, respectively, the Company capitalized a total of $2,900,000 and $2,900,000 in patent acquisition costs. 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. Amortization of patents is included as an operating expense as reflected in the accompanying consolidated condensed statements of operations. The Company assesses fair market value for any impairment to the carrying values. The Company did not record an impairment charge to its intangible assets during the three and six months ended June 30, 2017, compared to an impairment charge associated with the end of life of a number of the Company’s portfolios during the three and six months ended June 30, 2016 in the amounts of $620,696 and $993,890, respectively.
Patent amortization expense for the three and six months ended June 30, 2017 was $639,887 and $1,345,846, respectively, and for the three and six months ended June 30, 2016, patent amortization expense was $1,961,411 and $3,987,310, respectively. All patent amortization expense figures are net of foreign currency translation adjustments. Future amortization of intangible assets, net of foreign currency translation adjustments is as follows:
As of June 30, 2017, our operating subsidiaries owned 293 patents, as set forth below, and had economic rights to over 10,000 additional patents, both of which include U.S. patents and certain foreign counterparts, covering technologies used in a wide variety of industries. In the aggregate, the earliest date for expiration of a patent in the Company’s patent portfolio has passed (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 January 13, 2021, and the latest expiration date for a patent in any of the Company’s patent portfolios is July 29, 2033. A summary of the Company’s patent portfolios is as follows:
On June 14, 2017, Motheye Technologies, LLC (“Motheye”), one of the Company’s wholly-owned subsidiaries, entered into an agreement whereby the patent held in Motheye was assigned back to the seller of the portfolio.
No definition available.
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://www.xbrl.org/2003/role/presentationRef