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Intellectual Property
 6 Months Ended
Jun. 30, 2015
Business Combinations [Abstract]  
Intellectual Property

Note 5 – Intellectual Property

 

Intellectual Property partially consists of technology acquired from the purchase of 100% of the membership interests of Cornerstone Conservation Group LLC (“Cornerstone”) in March 30, 2012 for $659,440. Accumulated amortization with respect to this intellectual property was $659,440 at June 30, 2015.

 

On June 30, 2015, the Company entered into an Assignment Agreement with VyrexIP Holdings Inc., a company owned by Company shareholder Edward Gomez for the purchase of intellectual property. The net price of these assets was comprised of a down payment of $16,116 and a $58,436 promissory note to the seller due July 15, 2016, partially offset by assignment by the seller to the Company of a $38,000 promissory note due November 14, 2015, issued by the seller’s licensee Epalex Corporation, a company of which Mr. Gomez is chairman and a major stockholder.

 

For each of the six months ended June 30, 2015 and 2014, amortization expense was $54,953 and $109,907 and accumulated amortization of the intangible asset- intellectual property was $659,440 at June 30, 2015.

 

Future amortization of the intangible asset – intellectual property was as follows as of June 30, 2015:

 

Year ending December 31:    
    2015   $           6,092
    2016              12,184
    2017                      12,184
    2018                6,092
Total   $         36,552

 

Note Payable at June 30, 2015 consists of $58,436 promissory note to VyrexIP Holdings Inc. for the purchase of intellectual property. The Company has agreed to pay principal plus accrued interest over 10 monthly payments of $6,080.64, each due on the 15th day of each month, beginning October 15th, 2015.

 

The installments due by December 15, 2015 are included in the Current Liabilities portion of the Note Payable on the condensed consolidated financial statements.

 

The remaining installments due by July 15, 2016 are included in the Long-Term Liabilities portion of the Note Payable on the condensed consolidated financial statements.