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5. INTANGIBLE ASSETS AND ASSET ACQUISITION
 6 Months Ended
Jun. 30, 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 were pledged as collateral for the convertible notes 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 $185,000 and $185,000 for the six months ended June 30, 2015 and 2014.

 

           Definite life intangible assets consist of the following:

 

   

June 30,

2015

(Unaudited)

    

December 31,

2014

  
             
Intellectual property and patents   $ 2,848,300     $ 2,848,300  

Less:  Accumulated Amortization

      815,998        631,244  
Intangible Assets, net   $ 2,032,302     $ 2,217,056  

 

Indefinite life intangible assets consist of the following:

 

   

June 30,

2015 (Unaudited)

    

December 31,

2014

  
Trademarks   $ 440,000     $ 440,000  
                 

 

   

June 30,

2015

(Unaudited)

    

December 31,

2014

  
Total Intangible Assets   $ 2,472,302     $ 2,657,056  
                 

 

Approximate amortization over the next five years is as follows:

 

Twelve Month Period Ending June 30, Amount
   
2016 $370,000
2017 370,000
2018 370,000
2019 370,000
2020 370,000
Thereafter 182,000
  $2,032,000