|6 Months Ended|
Jun. 30, 2017
6. Intangible Assets
The Company’s intangible assets consist of the following:
License agreements are being amortized over periods ranging from 17-20 years. Patent costs were being amortized over three years. As of June 30, 2017, the patents were fully amortized, and the remaining patents of $434,108 are pending patent costs and are being amortized over periods up to 20 years. Amortization expense was approximately $19,000 and $16,000 for the three months ended June 30, 2017 and 2016, respectively, and approximately $42,000 and $32,000 for the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, future amortization of license agreements and patents (i) for the remainder of fiscal year 2017 is $37,000, (ii) for the fiscal years 2018 through 2022 is expected to be $74,000 per year, and (iii) after 2022 an aggregate $533,000.
The Company has entered into multiple license agreements (together, the “License Agreements”) with the University of Florida Research Foundation and the University of Texas at Austin. Under the terms of the License Agreements, the Company acquired exclusive worldwide licenses for underlying technology used in repairing and regenerating nerves. The licensed technologies include the rights to issued patents and patents pending in the United States and international markets. The effective term of the License Agreements extends through the term of the related patents and the agreements may be terminated by the Company with 60 days prior written notice. Additionally, in the event of default, licensors may terminate an agreement if the Company fails to cure a breach after written notice. The License Agreements contain the key terms listed below:
Royalty fees were approximately $303,000 and $217,000 during the three months ended June 30, 2017 and 2016, respectively, and approximately $541,000 and $370,000 during the six months ended June 30, 2017 and 2016, respectively, and are included in sales and marketing expense on the accompanying condensed consolidated statements of operations.
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://www.xbrl.org/2003/role/presentationRef