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Intangible Assets | 12 Months Ended
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Dec. 31, 2024
Intangible Assets [Abstract] |
INTANGIBLE ASSETS | NOTE 5 - INTANGIBLE ASSETS Intangible assets represent the cost of medical formulas approved for production by the NMPA, the intellectual property acquired (“Bonier Agreement”) from Chengdu Bonier Medical Technology Development Co., Ltd. (“Bonier”), and the Technology Transfer Agreements discussed below. No costs were reclassified from advances to intangible assets during the years ended December 31, 2024 and 2023, 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. The acquired intellectual property is being amortized over the life of the patents, which range from 10 to 20 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 $447,246 and $223,796 for the years ended December 31, 2024 and 2023, respectively which was included in the general and administrative expenses. Medical formulas and the acquired technology typically do not have a residual value at the end of their amortization period. On November 22, 2024, Helpson entered into a Technology Transfer Agreement (the “Li Yong Agreement”) with Li Yong (“Transferor Yong”). Transferor Yong owns an invention patent of a pharmaceutical composition for treatment of psoriatic arthritis and moderate to severe plaque psoriasis (the “Yong Invention Patent”). Pursuant to the Li Yong Agreement, Transferor Yong will transfer the ownership of the Yong Invention Patent to Helpson. The aggregate transfer price as contemplated by the Agreement is $580,000 which was paid to the Transferor and his two designees upon the issuance of 2,900,000 shares of common stock of the Company at $0.20 per share based on the closing market price of the Company’s common stock as of the closing date of December 2, 2024. The Company recorded the amount as intangible assets on the accompanying balance sheet as of the closing date. On November 22, 2024, Helpson entered into a Technology Transfer Agreement (the “Zhao Xijun Agreement”) with Zhao Xijun (“Transferor Xijun”). Transferor Xijun owns an invention patent of a riboflavin stomach floating tablet and a preparation method thereof (the “Xijun Invention Patent”). Pursuant to the Li Yong Agreement, Transferor Yong will transfer the ownership of the Xijun Invention Patent to Helpson and provide relevant technical services. The aggregate transfer price as contemplated by the Agreement is $580,000 which was paid to the Transferor and his two designees upon the issuance of 2,900,000 shares of common stock of the Company at $0.20 per share based on the closing market price of the Company’s common stock as of the closing date of December 2, 2024. The Company recorded the amount as intangible assets on the accompanying balance sheet as of the closing date. On November 22, 2024, Helpson entered into a Technology Transfer Agreement (the “Zhao Chunhai Agreement”) with Zhao Chunhai (“Transferor Chunhai”). Transferor Chunhai owns an invention patent of a pharmaceutical composition for the treatment of gray nail (the “Chunhai Invention Patent”). Pursuant to the Zhao Chunhai Agreement, Transferor Chunhai will transfer the ownership of the Chunhai Invention Patent to Helpson and provide relevant technical services. The aggregate transfer price as contemplated by the Agreement is $600,000 which was paid to the Transferor and his two designees upon the issuance of 3,000,000 shares of common stock of the Company at $0.20 per share based on the closing market price of the Company’s common stock as of the closing date of December 2, 2024. The Company recorded the amount as intangible assets on the accompanying balance sheet as of the closing date. On November 22, 2024, Helpson entered into a Technology Transfer Agreement (the “Du Pingping Agreement”) with Du Pingping (“Transferor Pingping”). Transferor Pingping owns an invention patent drug composition of ansetropisimvastatin (the “Pingping Invention Patent”). Pursuant to the Du Pingping Agreement, Transferor Pingping will transfer the ownership of the Pingping Invention Patent to Helpson and provide relevant technical services. The aggregate transfer price as contemplated by the Agreement is $570,000 which was paid to the Transferor and his two designees upon the issuance of 2,850,000 shares of common stock of the Company at $0.20 per share based on the closing market price of the Company’s common stock as of the closing date of December 2, 2024. The Company recorded the amount as intangible assets on the accompanying balance sheet as of the closing date. On February 2, 2024, Helpson entered into a Technology Transfer Agreement (the “Lihua Li Agreement”) with Lihua Li (“Transferor Li”). Transferor Li owns an invention patent of a pharmaceutical composition for treatment of psoriasis (the “Li Invention Patent”). Pursuant to the Lihua Li Agreement, Transferor Li will transfer the ownership of the Li Invention Patent to Helpson. Transferor Li or his designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application. The aggregate transfer price as contemplated by the Agreement is $1.365 million which was paid to the Transferor and his two designees upon the issuance of 3,000,000 shares of common stock of the Company at $0.455 per share based on the closing market price of the Company’s common stock as of the closing date. The Company recorded the amount as intangible assets on the accompanying balance sheet as of the closing date. The value of the intangible asset will be amortized over its remaining useful life of approximately 20 years. During the ten years after the product launches to the market, if and only if the product generates profit, Helpson shall pay 10% of the net profit of the sales in cash on an annual basis to Transferor Li. On December 15, 2023, the Company entered into a Technology Transfer Agreement (the “Tao Liu Agreement”) with Tao Liu (“Transferor Liu”). Transferor Liu owns an invention patent of a drug combination for the treatment of chronic obstructive pulmonary disease (the “Liu Invention Patent”). Pursuant to the Tao Liu Agreement, Transferor Liu will transfer the ownership of the Liu Invention Patent to Helpson. Transferor Liu or his designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application and other technical services. During the ten years after the product launches to the market, if and only if the product generates profit, Helpson shall pay 15% of the net profit of the sales in cash on an annual basis to Transferor Liu. On November 28, 2022, the Company entered into a Technology Transfer Contract with Bonier. Bonier owns the know-how of a technical invention and creation of an ophthalmic oxygen enriched atomization therapeutic instrument, which has obtained a utility model patent (the “Utility Model Patent”) and applied for an invention patent (the “Bonier Invention Patent”) at the same time. Pursuant to the Bonier Agreement, Bonier will transfer the ownership of the Utility Model Patent of the technical invention and the Bonier Invention Patent application right of the invention to Helpson. Bonier or its designated third party shall provide relevant technical services in Haikou, which include but are not limited to product research and development, writing of registration materials, registration application and other technical services, with a term of ten years. The Company 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 above mentioned Bonier Invention Patent. There were no service fees or profit payments paid related to the above three agreements for the years ended December 31, 2024 and 2023, 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 years ended December 31, 2024 and 2023. Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and two Invention Patents as follows:
|  | December 31, |  |  | December 31, |
|  | 2024 |  |  | 2023 |
NMPA approved medical formulas |  | $ | 4,696,267 |  |  | $ | 4,766,353 |
Technology from Bonier |  |  | 1,701,110 |  |  |  | 1,726,497 |
Invention Patents |  |  | 5,308,930 |  |  |  | 1,653,028 |
|  |  | 11,706,307 |  |  |  | 8,145,878 |
Accumulated amortization |  |  | (5,261,827 | ) |  |  | (4,890,646 | )
Net carrying amount |  |  | 6,444,480 |  |  |  | 3,255,232 |
Intangible assets in process |  |  | 250,956 |  |  |  | - |
|  | $ | 6,695,436 |  |  | $ | 3,255,232 |
The estimated aggregate annual amortization expense for each of the next five years and thereafter is as follows:
Year |  | Amount |
2025 |  |  | 526,118 |
2026 |  |  | 497,612 |
2027 |  |  | 497,612 |
2028 |  |  | 497,612 |
2029 |  |  | 497,612 |
Thereafter |  |  | 4,178,870 |
Total |  | $ | 6,695,436 |

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