Intangible Assets

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

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	June 30, 2018			December 31, 2017
Cost	$	697,955		$	697,955
Amortization		(459,863	)		(436,106	)
Net intangible assets	$	238,092		$	261,849

	June 30, 2018				December 31, 2017
Beginning balance for total intangible assets		$	261,849			$	309,363
Amortization			(23,757	)			(47,514	)
Intangible assets		$	238,092			$	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 six months ended June 30, 2018 and 2017, the Company recorded amortization expense of $23,757 and $23,756, respectively. See Note 1.

As of June 30, 2018, the future amortization for the next five years for the Company’s intangible assets consist of the following:

Year	Anticipated Amortization
2018	$	23,756
2019		47,513
2020		47,513
2021		47,513
2022		47,513
Thereafter		24,284
Total anticipated amortization of intangible assets	$	238,092