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5. INTANGIBLE ASSETS AND ASSET ACQUISITION
 3 Months Ended
Mar. 31, 2015
Notes to Financial Statements  
NOTE 5. INTANGIBLE ASSETS AND ASSET ACQUISITION

Intangible assets consist of Patents and Trademarks related to our Binary Ionization Technology.  All of these assets are pledged as collateral for the convertible notes issued as described below in Note 6.  The patents are being amortized over the estimated remaining lives of the related patents.  The trademarks have an indefinite life.  Amortization expense was $92,377 and $92,377 for the three months ended March 31, 2015 and 2014.

 

Definite life intangible assets consist of the following:

 

   

March 31,

2015 (Unaudited)

    

December 31,

2014

  
             
Intellectual property and patents   $ 2,848,300     $ 2,848,300  
Less:  Accumulated Amortization      723,621        631,244  
Intangible Assets, net   $ 2,124,679     $ 2,217,056  

 

Indefinite life intangible assets consist of the following:

 

   

March 31,

2015 (Unaudited)

    

December 31,

2014

  
Trademarks   $ 440,000     $ 440,000  
                 

 

   

March 31,

2015 (Unaudited)

    

December 31,

2014

  
Total Intangible Assets   $ 2,564,679     $ 2,657,056  
                 

 

Approximate amortization over the next five years is as follows:

 

Year Ending December 31,   Amount  
2015   $ 274,000  
2016     370,000  
2017     370,000  
2018     370,000  
2019     370,000  
Thereafter     370,000  
    $ 2,124,000