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Intangible Assets

3 Months Ended

Mar. 31, 2017

3. Intangible Assets

Intangible assets are comprised of the following:

			March 31, 2017						December 31, 2016
	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		1,742,883		254,417		1,997,300		1,721,357		275,943
Acquired intangibles-patents and patent rights	Varied	(1)		3,155,000		2,220,561		934,439		3,155,000		2,092,767		1,062,233
Patent application costs	Varied	(2)		1,141,415		599,323		542,092		1,136,465		578,623		557,842
			$	6,293,715	$	4,562,767	$	1,730,948	$	6,288,765	$	4,392,747	$	1,896,018

	⁽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 March 31, 2017, the weighted average remaining useful life of these assets in service was approximately 1.8 years.

	⁽²⁾	Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of March 31, 2017, the weighted average remaining useful life of these assets in service was approximately 6.7 years.

Intangible asset amortization expense for the three months ended March 31, 2017 amounted to $170,019 ($190,377 - March 31, 2016).