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INTANGIBLE ASSETS, NET
 9 Months Ended
Sep. 30, 2016
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
INTANGIBLE ASSETS, NET

NOTE 8 – INTANGIBLE ASSETS, NET

 

The following table sets forth the gross carrying amount and accumulated amortization of our intangible assets as of September 30, 2016 and December 31, 2015:

 

    September 30, 2016  
    Gross
Carrying
Amount		     Accumulated
Amortization		     Net
Amount		     Weighted-
Average
Remaining
Amortization
Period (yrs.)		  
Amortizing intangible assets:                                
OPERA® software patent   $ 31,951     $ (5,991 )   $ 25,960       13  
Development costs of corporate website     91,743       (91,743 )     —       n/a  
Approved hormone therapy drug candidate patents     959,059       (86,907 )     872,152       16.25  
Hormone therapy drug candidate patents (pending)     1,037,829       —       1,037,829       n/a  
Non-amortizing intangible assets:                                
Multiple trademarks     182,437       —       182,437       indefinite  
TOTAL   $ 2,303,019     $ (184,641 )   $ 2,118,378          

 

    December 31, 2015  
    Gross
Carrying
Amount		     Accumulated
Amortization		     Net
Amount		     Weighted-
Average
Remaining
Amortization
Period (yrs.)		  
Amortizing intangible assets:                                
OPERA® software patent   $ 31,951     $ (4,493 )   $ 27,458       13.75  
Development costs of corporate website     91,743       (91,743 )     —       n/a  
Approved hormone therapy drug candidate patents     705,752       (49,845 )     655,907       17  
Hormone therapy drug candidate patents (pending)     774,165       —       774,165       n/a  
Non-amortizing intangible assets:                                
Multiple trademarks     157,721       —       157,721       indefinite  
TOTAL   $ 1,761,332     $ (146,081 )   $ 1,615,251          

   

We capitalize external costs, consisting primarily of legal costs, related to securing our patents and trademarks. Once a patent is granted, we amortize the approved hormone therapy drug candidate patents using the straight-line method over the estimated useful life of approximately 20 years, which is the life of intellectual property patents. If the patent is not granted, we write-off any capitalized patent costs at that time. Trademarks are perpetual and are not amortized. As of September 30, 2016, the remaining life related to OPERA® patent was approximately 13 years and the remaining life related to the approved hormone therapy drug candidate patents was approximately 16 years.

 

In addition to numerous pending patent applications, as of September 30, 2016, we had 17 issued patents, including:

 

  • 13 utility patents that relate to our combination progesterone and estradiol product candidates, which are owned by us and are U.S. jurisdiction patents with expiration dates in 2032.  We have pending patent applications with respect to certain of these patents in Argentina, Australia, Brazil, Canada, Europe, Israel, Japan, Mexico, Russia, South Africa, and South Korea;

 

  • two utility patents that relate to TX-004HR, our applicator-free vaginal estradiol softgel product candidate, which establish an important intellectual property foundation for TX-004HR, which are owned by us and are U.S. jurisdiction patents with expiration dates in 2033 and 2032.  We have pending patent applications with respect to certain of these patents in Argentina, Australia, Brazil, Canada, Europe, Israel, Japan, Mexico, Russia, South Africa, and South Korea;

 

  • one utility patent that relates to a pipeline transdermal patch technology, which is owned by us and is a U.S. jurisdiction patent with an expiration date in 2032.  We have pending patent applications with respect to this technology in Australia, Brazil, Canada, Europe, Mexico, Japan, and South Africa; and

 

  • one utility patent that relates to our OPERA® information technology platform, which is owned by us and is a U.S. jurisdiction patent with an expiration date in 2029.

 

Amortization expense was $13,917 and $8,692 for the three months ended September 30, 2016 and 2015, respectively and $38,560 and $22,296 for the nine months ended September 30, 2016 and 2015, respectively. Estimated amortization expense for the next five years is as follows:

 

Year Ending
December 31,		     Estimated
Amortization		  
  2016 (3 months)     $ 13,917  
  2017     $ 55,668  
  2018     $ 55,668  
  2019     $ 55,668  
  2020     $ 55,668