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Intangible Assets
 9 Months Ended
Sep. 30, 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 from Chengdu Bonier Medical Technology Development Co., Ltd. through certain Technology Transfer Agreement (“Bonier Agreement”) 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 nine months ended September 30, 2025 and 2024, respectively.

 

On August 29, 2025, the Company entered into a Technology Transfer Agreement (the “Yan Yang Agreement”) with Yan Yang (“Transferor Yang”). Transferor Yang owns Apremilast Vector and method for its preparation, which has obtained a patent for the treatment of chronic obstructive pulmonary disease (the “Yang Invention Patent”). Pursuant to the Yan Yang Agreement, Transferor Yang will transfer the ownership of the Yang Invention Patent to Helpson. Transferor Yang 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.

 

The aggregate transfer price as contemplated by the Yan Yang Agreement is $2.446 million which was paid to the Transferor and his two designees upon the issuance of 1,760,000 shares of common stock of the Company at $1.39 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 15.5 years.

 

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 nine months ended September 30, 2025 and 2024, respectively.

 

Approved medical formulas are amortized from the date NMPA approval is obtained over their individually identifiable estimated useful life, which ranges 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 $197,958 and $104,845 for the three months ended September 30, 2025 and 2024, respectively and $513,030 and $306,914 for the nine months ended September 30, 2025 and 2024 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 three Invention Patents as follows:

 

   September 30,   December 31, 
   2025   2024 
NMPA approved medical formulas  $4,751,058   $4,696,267 
Technology from Bonier   1,720,957    1,701,110 
Invention Patents   7,816,409    5,308,930 
    14,288,424    11,706,307 
Accumulated amortization   (5,840,485)   (5,261,827)
Net carrying amount   8,447,939    6,444,480 
Intangible assets in process   327,097    250,956 
   $8,775,036   $6,695,436