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Intangible Assets
12 Months Ended
Dec. 31, 2016
Intangible Assets  
Intangible Assets

 

NOTE 8 – Intangible Assets

 

The Company’s intangible assets consist of Patents, Patent Pending Applications and Customer Contacts.

 

Provisional patent applications are not amortized until a patent has been granted. Once a patent is granted, the Company will amortize the related costs over the estimated useful life of the patent. If a patent application is denied, then the costs will be expensed at that time.

 

The customer contacts were acquired in a business acquisition on December 31, 2011 and were to be amortized over their estimated useful life of 3 years.

 

The following is a summary of definite-life intangible assets less accumulated amortization as of December 31, 2016 and 2015, respectively:

 

 

 

Year Ended December 31,

 

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

Provisional Patent Applications

 

$

183,574

 

$

137,927

Patents

 

 

59,701

 

 

39,252

Customer Contacts

 

 

262,009

 

 

262,009

Less: Accumulated Amortization

 

 

(278,833)

 

 

(271,544)

 

 

 

 

 

 

 

Net Intangible Assets

 

$

226,450

 

$

167,644

 

Amortization expense on intangible assets was $2,309 and $2,308 for the years ended December 31, 2016 and 2015.

 

The estimated aggregate amortization expense for each of the succeeding years ending December 31 is as follows:

 

2017

 

 

2,309

2018

 

 

2,309

2019

 

 

2,309

2020

 

 

2,309

Thereafter

 

 

18,172

 

 

 

 

 

 

$

29,717