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Intangible Assets | 12 Months Ended
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Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | NOTE 4 - INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the National Medical Products Administration (the "NMPA", formerly China Food and Drug Administration, CFDA). The Company did not obtain NMPA production approval for any medical formulas during the years ended December 31, 2019 and 2018 and no costs were reclassified from advances to intangible assets during the years ended December 31, 2019 and 2018, respectively. Approved medical formulas are amortized from the date NMPA 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 $57,665 and $115,143 for the years ended December 31, 2019 and 2018, respectively, which was included in the general and administrative expenses. Medical formulas typically do not have a residual value at the end of their amortization period. The Company evaluates each approved medical formula for impairment at the date of NMPA approval, when indications of impairment are present and also at the date of each financial statement. The Company's evaluation is based on an estimated undiscounted net cash flow model, which considers currently available market data for the related drug and the Company's estimated market share. If the carrying value of the medical formula exceeds the estimated future net cash flows, an impairment loss is recognized for the excess of the carrying value over the fair value of the medical formula, which is determined by the estimated discounted future net cash flows. No impairment loss was recognized during the years ended December 31, 2019 and 2018. Intangible assets consisted solely of NMPA approved medical formulas as follows:
|  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
Gross carrying amount |  | $ | 4,839,117 |  |  | $ | 4,909,318 |
Accumulated amortization |  |  | (4,633,506 | ) |  |  | (4,642,875 | )
Net carrying amount |  | $ | 205,611 |  |  | $ | 266,443 |
The estimated aggregate annual amortization expense for each of the next five years and thereafter is as follows:
Year |  | Amount |
2020 |  |  | 35,248 |
2021 |  |  | 35,248 |
2022 |  |  | 35,248 |
2023 |  |  | 35,248 |
2024 |  |  | 35,248 |
Thereafter |  |  | 29,371 |
Total |  | $ | 205,611 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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