Intangible Assets

3 Months Ended

Mar. 31, 2018

NOTE 6 – INTANGIBLE ASSETS

The Company’s intangible assets consist of patents and patents pending acquired from third parties, and are recorded at cost. The Company amortizes the costs of its intangible assets over their estimated useful lives unless such lives of approximately 11 years. Patents pending are not amortized until the patents are issued. Amortizable intangible assets are tested for impairment based on undiscounted cash flows and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested for impairment, at least annually, and written down to fair value as required.

The Company’s intangible assets, net of accumulated amortization consisted of the following:

Patents and/or software licenses, net	March 31, 2018			December 31, 2017
Cost	$	697,955		$	697,955
Amortization		(447,985	)		(436,106	)
Net intangible assets	$	249,970		$	261,849

	March 31, 2018			December 31, 2017
Beginning balance for total intangible assets	$	261,849		$	309,363
Amortization		(11,879	)		(47,514	)
Intangible assets	$	249,970		$	261,849

The Surface Modification Technologies assets include a patent, a patent pending, trade secret technology, instructions, manuals and materials on certain manufacturing processes and know-how. For the three months ended March 31, 2018 and 2017, the Company recorded amortization expense of $11,879 and $11,878, respectively. See Note 1.

As of March 31, 2018, the future amortization for the next five years for the Company’s intangible assets consist of the following:

Year		Anticipated Amortization
2018		$	35,634
2019			47,513
2020			47,513
2021			47,513
2022			47,513
Thereafter			24,284
	Total anticipated amortization of intangible assets	$	249,970