In 2015, the Company entered into licensing agreements which expire on February 7, 2033. The agreements provide the Company an exclusive royalty-free license associated with semiconductor power switches which enhances its intellectual property portfolio. In 2015, the Company recorded legal and acquisition costs of $211,394 associated with the licensing agreements as other intangible assets. In March 2016, the Company recorded an additional $259,476, associated with a patent issuance under the licensing agreements, as an other intangible asset. This amount represents the estimated present value of all future payments associated with the issued patent. The Company is amortizing the capitalized costs over the 17-year term of the agreements. For further discussion of the licensing agreement, see Footnote 8.

 

Amortization expense amounted to $15,705, $29,067 and $5,406, $9,963 for the three and six months ended June 30, 2016 and 2015, respectively. Amortization expense for the succeeding five years and thereafter is $32,885 (2016), $65,769 (2017), $65,769 (2018), $65,769 (2019), $65,769 (2020), and $854,593 (thereafter).