Patents and Other Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 4 – Patents and Other Intangible Assets

Patents and other intangible assets are summarized as follows:

	December 31,		December 31,
	2016		2015
Patents
Patents pending	$	1,040,000	$	2,730,000
Issued patents		747,000		115,000
		1,787,000		2,845,000
Trademarks
Trademarks pending		23,000		18,000
Registered trademarks		23,000		23,000
		46,000		41,000
Other		8,000		8,000
		1,841,000		2,894,000
Accumulated amortization		(106,000)		(13,000)
	$	1,735,000	$	2,881,000

In 2016, the Company reassessed its patent portfolio in order to ensure that both the cost-effectiveness and the value created through the intellectual property portfolio were maximized and to focus resources on its most promising patents. Those patents considered to be the most beneficial were retained and those pending patents projected to be unnecessarily costly that could be disposed of without meaningfully degrading the quality of the remaining intellectual property portfolio were abandoned. Further, an impairment loss was recorded for certain other patents pending which are believed to be of diminished value, but in the judgment of management remain worthwhile to continue to pursue until the product attributes and related reasonable patent protection can be better determined. As a result, during the years ended December 31, 2016 and 2015, the Company recorded impairment losses of $1,971,000 and $593,000 respectively, of capitalized patents pending.

A reconciliation of patent activity for the years ended December 31, 2016 and 2015 is summarized as follows:

	Duplex		ECC		Total
Balance at January 1, 2015	$	481,000	$	1,848,000	$	2,329,000
Abandonments and impairments		(19,000)		(574,000)		(593,000)
Additions		669,000		440,000		1,109,000
Balance at December 31, 2015		1,131,000		1,714,000		2,845,000
Abandonments and impairments		(757,000)		(1,214,000)		(1,971,000)
Additions		546,000		367,000		913,000
Balance at December 31, 2016	$	920,000	$	867,000	$	1,787,000

Future amortization expense associated with awarded patents and registered trademarks as of December 31, 2016 is estimated as follows:


2017	$	179,000
2018		179,000
2019		157,000
2020		91,000
2021		30,000
Thereafter		28,000
	$	664,000