Quarterly report pursuant to Section 13 or 15(d)

Other long-term assets

v3.10.0.1
Other long-term assets
9 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Other long-term assets
Note 6.  Other long-term assets:

Intangible rights acquired totaling $754,000 and $1,986,000, as of September 30, 2018 and December 31, 2017, respectively, consisted of intangible rights associated with the 1172767 and Logical Brokerage acquisitions.

Other long-term assets as of December 31, 2017 and September 30, 2018 consisted of the following (unaudited):
 
Cost:
 
September 30, 2018
(unaudited)
   
December 31, 2017
 
  Patents
 
$
1,092,681
   
$
1,059,832
 
  Goodwill
   
1,186,496
     
1,186,496
 
  Convertible note investment
   
200,000
     
200,000
 
Total
   
2,479,177
     
2,446,328
 
                 
Accumulated amortization:
               
  Patents
   
(594,011
)
   
(550,183
)
Total
   
(594,011
)
   
(550,183
)
                 
Net other long-term assets
 
$
1,885,166
   
$
1,896,145
 
 
The Company’s intangible assets with finite lives consist of its patents. The patents were issued in relation to its animal health business which has been out-licensed. For all periods presented, all of the Company’s identifiable intangible assets were subject to amortization. The carrying amounts related to acquired intangible assets as of September 30, 2018 were as follows (unaudited):
 
   
September 30, 2018
 
Patents at January 1, 2018, net
 
$
509,649
 
Additions
   
32,849
 
Less: amortization expense
   
43,828
 
Patents at September 30, 2018, net
 
$
498,670
 
 
The following table represents the total estimated amortization of intangible assets for the five succeeding years:
 
For the year ended December 31,
 
Estimated amortization expense
 
2018
 
$
(492,183
)
2019
 
$
58,000
 
2020
 
$
58,000
 
2021
 
$
58,000
 
2022
 
$
1,146,845
 

The Company capitalizes legal costs and filing fees associated with obtaining patents on its new discoveries. Once the patents have been issued, the Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method. Amortization expense totaled $14,000 and $53,000 for the three months ended September 30, 2018 and 2017, respectively. Amortization expense totaled $44,000 and $53,000 for the nine months ended September 30, 2018 and 2017, respectively. The Company tests intangible assets with finite lives upon significant changes in the Company’s business environment. The testing resulted in no patent impairment charges during the nine months ended September 30, 2018 and 2017.