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5. INTANGIBLE ASSETS AND ASSET ACQUISITION
 9 Months Ended
Sep. 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 $277,131 and $277,131 for the nine months ended September 30, 2015 and 2014

 

Definite life intangible assets consist of the following:

 

   

September 30,

2015

(Unaudited)

    

December 31,

2014

  
             
Intellectual Property and Patents   $ 2,848,300     $ 2,848,300  
Less: Accumulated Amortization      908,375        631,244  
Intangible Assets, net   $ 1,939,925     $ 2,217,056  

 

Indefinite life intangible assets consist of the following:

 

Trademarks   $ 440,000     $ 440,000  

 

Total Intangible Assets, net   $ 2,379,925     $ 2,657,056  

 

Approximate amortization over the next five years is as follows:

 

Twelve Month Period Ending September 30,   Amount  
       
2016   $ 370,000  
2017     370,000  
2018     370,000  
2019     370,000  
2020     370,000  
Thereafter     89,000  
    $ 1,939,000