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Intellectual Property and Note Payable
 12 Months Ended
Dec. 31, 2015
Business Combinations [Abstract]  
Intellectual Property and Note Payable

Note 5 – Intellectual Property and Note Payable

 

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 December 31, 2015 and $604,487 at December 31, 2014.

 

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. This note was paid in full in November 2015 in the amount of $42,579, including accrued interest.

 

For each of the years ended December 31, 2015 and 2014, amortization expense was $61,045 and $219,813 and accumulated amortization of the intangible asset- intellectual property was $665,532 at December 31, 2015.

 

Future amortization of the intangible asset – intellectual property was as follows as of December 31, 2015:

 

Year ending December 31:

  2016     $ 12,184  
  2017       12,184  
  2018       2,374  
Total       $ 26,742  

 

Note Payable at December 31, 2015 consists of $47,569 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.