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Intangible Assets
 9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

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  September 30, 2018  December 31, 2017
Cost  $697,955   $697,955 
Amortization   (471,741)   (436,106)
Net intangible assets  $226,214   $261,849 

 

   September 30, 2018  December 31, 2017
Beginning balance for total intangible assets  $261,849   $309,363 
Amortization   (35,635)   (47,514)
Intangible assets  $226,214   $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 nine months ended September 30, 2018 and 2017, the Company recorded amortization expense of $35,635 and $35,634, respectively. See Note 1.

 

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

 

Year  Anticipated Amortization
2018   $11,878 
2019    47,513 
2020    47,513 
2021    47,513 
2022    47,513 
Thereafter     24,284 
     Total anticipated amortization of intangible assets   $226,214