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Patents and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Note 4 – Patents and Other Intangible Assets

Patents and other intangible assets are summarized as follows:


	September 30,		December 31,
	2021		2020
Patents
Patents pending	$	596,000	$	731,000
Issued patents		538,000		883,000
		1,134,000		1,614,000
Trademarks
Trademarks pending		1,000		105,000
Registered trademarks		95,000		23,000
		96,000		128,000
Other		8,000		8,000
		1,238,000		1,750,000
Accumulated amortization		(296,000)		(448,000)
	$	942,000	$	1,302,000

Future amortization expense associated with issued patents and registered trademarks as of September 30, 2021 is as follows:


2021 (remaining 3 months)	$	28,000
2022		114,000
2023		91,000
2024		67,000
2025		32,000
Thereafter		6,000
	$	338,000

During the three months ended September 30, 2021, the Company assessed its patent and trademark assets. The Company also evaluated its strategic approach to the pursuit and protection of its intellectual property. It is the intent of the Company to continue to define the scope of pursuing intellectual property protection to be more aligned with core technology critical to the design of product offerings.

The Company identified certain assets where the intellectual property was not directly related to core technology within current products. Based on the results of the assessment, the Company has impaired $200,000 of assets previously classified as pending patent costs and of assets previously classified as pending trademark costs. This non-cash expense is reflected in the current quarter operating results as Research and Development and General and Administrative expenses, respectively. For certain issued patents where the protected intellectual property was not directly aligned with current products, the Company accelerated the amortization by $50,000 to reduce the financial net carrying value of capitalized patent costs and an additional $40,000 in accelerated amortization to align trademark net capitalized costs with trademark registeration dates.