Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.7.0.1
Intangible Assets
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets
Intangible Assets
 
Intangible assets, net consisted of the following:
 
 
 
December 31,
 
 
2016
 
2015
Patents
 
$
1,556,204

 
$
1,313,269

Other intangible assets
 
470,870

 
211,394

 
 
2,027,074

 
1,524,663

Accumulated amortization
 
(121,518
)
 
(57,852
)
 
 
$
1,905,556

 
$
1,466,811



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 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 of the other intangible assets over the 17-year term of the agreements using the straight-line method. For further discussion of the licensing agreement, see Footnote 13.

Amortization expense amounted to $63,666 and $30,597 for the years ended December 31, 2016 and 2015, respectively. Amortization expense for the succeeding five years and thereafter is $71,379 (2017); $71,379 (2018); $71,379 (2019); $71,379 (2020); $71,379 (2021); and $870,251 (thereafter).
 
At December 31, 2016 and 2015, the Company had capitalized approximately $678,410 and $612,000, respectively, for costs related to patents that have not been awarded.