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GOODWILL, IPR&D AND OTHER INTANGIBLES

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7 — GOODWILL, IPR&D AND OTHER INTANGIBLES

		March 31,			December 31,
		2023			2022
	Estimated Useful Lives	Gross carrying amounts			Gross carrying amounts

Goodwill		$	625,602		$	625,602

Finite-lived intangible assets:
Developed-product-technology rights	8 - 17 years	$	479,103		$	479,103
Licensing rights	10 years		418,836			418,836
Less: Accumulated amortization			(758,608	)		(752,237	)
Total finite-lived intangible assets, net			139,330			145,702
Indefinite-lived intangible assets:
In-process research and development			5,700,000			5,700,000
Total other intangible assets, net		$	5,839,330		$	5,845,702

The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. Goodwill is attributable to the NanoSynex Acquisition. Goodwill and intangible assets are recognized at fair value during the period in which an acquisition is completed, from updated estimates during the measurement period, or when they are considered to be impaired. These non-recurring fair value measurements, primarily for goodwill and intangible assets acquired, were based on Level 3 inputs. The Company estimates the fair value of long-lived assets on a non-recurring basis based on a market valuation approach, engaging independent valuation experts to assist in the determination of fair value. In the fourth quarter of fiscal 2022, in conjunction with the annual impairment assessment, the Company determined that the fair value of the reporting unit was less than the carrying value. In addition to continued losses in the reporting unit, the Company considered macroeconomic conditions including a deterioration in the equity markets evidenced by sustained declines in the Company’s stock price, peer companies, and major market indices since the acquisition date. The Company engaged independent valuation experts to assist in determining the fair value of the reporting unit. As a result of this analysis, the Company recorded a $4,239,000 goodwill and fixed asset impairment charge associated with the reporting unit for fiscal year ended December 31, 2022. There were no impairment losses during the three months ended March 31, 2023 and 2022.

The carrying value of the patents of approximately $136,000 and $140,000 at March 31, 2023 and December 31, 2022, respectively, are stated net of accumulated amortization of approximately $343,000 and $339,000, respectively. Amortization of patents charged to operations for the three months ended March 31, 2023 and 2022 was approximately $5,000 for each period. Total future estimated amortization of patent costs for the five succeeding years is approximately $14,000 for the remaining three months in the year ending December 31, 2023, approximately $15,000 for the year ending December 31, 2024, approximately $14,000 for year 2025 through year 2027 and approximately $65,000 thereafter.

The carrying value of the in-licenses of approximately $4,000 and $5,000 at March 31, 2023 and December 31, 2022 are stated net of accumulated amortization of approximately $415,000 and $414,000, respectively. Amortization of licenses charged to operations for the three months ended March 31, 2023 and 2022 was approximately $2,000 for each period. Total future estimated amortization of license costs is approximately $4,000 for the remaining nine months in the year ending March 31, 2023.