Intangible Assets, Net
|12 Months Ended|
Dec. 31, 2017
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Intangible Assets, Net||
NOTE 4 — INTANGIBLE ASSETS, NET
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 remaining useful lives of approximately 1 to 11 years. Once placed in service, the Company amortizes the costs of intangible assets over their estimated useful lives on a straight-line basis. During the years ended December 31, 2017 and 2016, respectively, the Company capitalized a total of $0 and $6,450,000 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 statements of operations. The Company assesses fair market value for any impairment to the carrying values. Management concluded that there was an impairment to the carrying value in the amount of $2,475,149 for the year ended December 31, 2017 compared to an impairment to the carrying value in the amount of $11,958,882 for the year ended December 31, 2016. The Company determined the fair value using a Level 3 fair value category of unobservable inputs and concluded that the fair value on these intangibles was zero.
Amortization expense for the years ended December 31, 2017 and 2016 was $1,850,267 and $7,453,004, respectively. As of December 31, 2017, there is no future amortization of current intangible assets.
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://www.xbrl.org/2003/role/presentationRef