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Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 4 - INTANGIBLE ASSETS

Intangible assets represent the cost of medical formulas approved for production by the CFDA. The Company did not obtain CFDA production approval for any medical formula during the year ended December 31, 2017 and 2016 and no costs were reclassified from advances to intangible assets in 2017 and 2016, respectively.

Approved medical formulas are amortized from the date CFDA approval is obtained over their individually identifiable estimated useful life, which range from ten to thirteen years. It is at least reasonably possible that a change in the estimated useful lives of the medical formulas could occur in the near term due to changes in the demand for the drugs and medicines produced from these medical formulas. Amortization expense relating to intangible assets was $165,394 and $262,908 for the years ended December 31, 2017 and 2016, respectively, and was included in the general and administrative expenses. Medical formulas typically do not have a residual value at the end of their amortization period.

Intangible assets consisted solely of CFDA approved medical formulas as follows:

	December 31,			December 31,
	2017			2016
Gross carrying amount	$	5,188,547		$	4,861,766
Accumulated amortization		(4,789,691	)		(4,327,084	)
Net carrying amount	$	398,856		$	534,682

The estimated aggregate annual amortization expense for each of the next five years and thereafter is as follows:

Year	Amount
2018		117,257
2019		61,140
2020		37,793
2021		37,793
2022		37,793
Thereafter		107,080
Total	$	398,856