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Intangible Assets
 6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

3. Intangible Assets

 

Intangible assets are comprised of the following:

 

        June 30, 2016     December 31, 2015  
    Useful Life   Gross Carrying Amount     Accumulated Amortizaton     Net Carrying Amount     Gross Carrying Amount     Accumulated Amortizaton     Net Carrying Amount  
                                         
Acquired intangibles- customer lists and non-compete agreements   5 -10 years     1,997,300       1,678,307       318,993       1,997,300       1,635,257       362,043  
Acquired intangibles-patents and patent rights   Varied (1)     3,155,000       1,837,180       1,317,820       3,650,000       1,562,526       2,087,474  
Patent application costs   Varied (2)     1,130,750       537,223       593,527       1,062,958       494,931       568,027  
        $ 6,283,050     $ 4,052,710     $ 2,230,340     $ 6,710,258     $ 3,692,714     $ 3,017,544  

 

  (1) Acquired patents and patent rights are amortized over their expected useful life which is generally the remaining legal life of the patent. As of June 30, 2016, the weighted average remaining useful life of these assets in service was approximately 2.7 years.
     
  (2) Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of June 30, 2016, the weighted average remaining useful life of these assets in service was approximately 9.0 years.

 

During the six months ended June 30, 2016, the Company received proceeds of $495,000 for the sale of certain patents that were included in a pool of acquired patents. The Company evaluates acquired patents as related pools of assets for purposes amortization and impairment, as well as operational evaluation and use. Accordingly, the proceeds received from the sale of the patents will reduce the cost of the pool of assets until the carrying value of the pool is reduced to zero. Any excess proceeds from future sales will result in a gain. The Company also considers the impact that the sale of a portion of the pool has on expected future recoverability on the pool. No impairment was considered necessary as a result of this evaluation.

 

Intangible asset amortization expense for the six months ended June 30, 2016 amounted to $359,996 ($466,596 - June 30, 2015).