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Intangible Assets
 3 Months Ended
Mar. 31, 2025
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. and the invention patents and intellectual property acquired pursuant to Technology Transfer Agreements in 2024 and 2023. No costs were reclassified from advances to intangible assets during the three months ended March 31, 2025 and 2024, respectively.

 

There were no service fees or profit payments paid related to the Bonier Agreement or the Technology Transfer Agreements from 2024 and 2023 for the three months ended March 31, 2025 and 2024, 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 $157,712 and $97,077 for the three months ended March 31, 2025 and 2024, 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.

Intangible assets consisted of NMPA approved medical formulas, a Utility Model Patent and two Invention Patents as follows:

 

   March 31,   December 31, 
   2025   2024 
NMPA approved medical formulas  $4,702,940   $4,696,267 
Technology from Bonier   1,703,527    1,701,110 
Invention Patents   5,316,474    5,308,930 
    11,722,941    11,706,307 
Accumulated amortization   (5,426,966)   (5,261,827)
Net carrying amount   6,295,975    6,444,480 
Intangible assets in process   273,946    250,956 
   $6,569,921   $6,695,436