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Intellectual Property
 3 Months Ended
Mar. 31, 2017
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 March 31, 2017 and December 31, 2016.

 

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 as of March 31, 2016. Accumulated amortization with respect to this intellectual property was $21,322 and $18,276 at March 31, 2017 and December 31, 2016, respectively.

 

On June 1, 2016, the Company paid $100,000 for a ten-year License Agreement with Helidyne LLC to utilize the Helidyne intellectual property in the manufacturing of planetary rotor expanders and the incorporation of same in the Company’s distributed electric power generation systems. The license agreement also grants the Company an exclusive license to sell the expanders whether manufactured by Helidyne or by the Company. The Company’s royalty obligation begins on the earlier of the commercialization of the product or three years from the effective date of the agreement. Once the royalty obligation begins, the minimum annual royalty is $50,000 for the first six years, and $100,000 for the remainder of the agreement.

 

For the three months ended March 31, 2017 and 2016, amortization expense was $5,546 and $3,046 respectively, and accumulated amortization of the intangible assets was $689,084 and $668,578 at March 31, 2017 and December 31, 2016, respectively.

 

Future amortization of the intangible assets was as follows as of March 31, 2017:

 

Year ending December 31:    
2017     $ 16,638  
2018       12,374  
2019       10,000  
2020       10,000  
Thereafter       54,178  
Total     $ 103,190