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Intangible Assets | 9 Months Ended
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Sep. 30, 2023
Intangible Assets [Abstract] |
INTANGIBLE ASSETS | NOTE 4 – INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the NMPA and the intellectual property acquired in November 2022 from Chengdu Bonier Medical Technology Development Co., Ltd (“Bonier”). On November 28, 2022, Helpson entered into a Technology Transfer Contract (the “Bonier Agreement”) with Bonier regarding a technical invention and creation of an ophthalmic oxygen enriched atomization therapeutic instrument, pursuant to which Helpson has been granted a utility model patent (the “Utility Model Patent”) and applied for an invention patent (the “Invention Patent”). No costs were reclassified from advances to intangible assets during the nine months ended September 30, 2023 and 2022, respectively. On August 9, 2023, the Company obtained the “Drug Supplementary Application Approval Notice” from the NMPA for the indicating that the Company’s Candesartan tablets have passed the quality and efficacy consistency evaluation of generic drugs. 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 $52,514 and $8,951 for the three months ended September 30, 2023 and 2022, respectively and $161,538 and $27,914 for the nine months ended September 30, 2023 and 2022, 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. Based on the Bonier Agreement, Helpson will pay a service fee of 15% of the net profit of the corresponding product sales revenue, which will be paid in cash annually after it launches to the market, contingent on the successful authorization of the Invention Patent. There were no service fees paid for the three and nine months ended September 30, 2023 and 2022, respectively. 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 three and nine months ended September 30, 2023 and 2022. Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and an Invention Patent as follows:
|  | September 30, |  |  | December 31, |
|  | 2023 |  |  | 2022 |
Gross carrying amount |  | $ | 6,405,040 |  |  | $ | 6,554,628 |
Accumulated amortization |  |  | (4,762,683 | ) |  |  | (4,747,142 | )
Net carrying amount |  | $ | 1,642,357 |  |  | $ | 1,807,486 |

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- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350-30/tableOfContent + Details
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