Annual report pursuant to Section 13 and 15(d)

Other long-term assets

v3.7.0.1
Other long-term assets
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Other long-term assets
Note 4.  Other long-term assets:

Other long-term assets consisted of the following as of December 31, 2016 and 2015:
 
   
Beginning Balance
   
Additions
   
Impairments
   
Ending Balance
 
Year ended December 31, 2016:
                       
Cost:
                       
  Patents
 
$
1,684,737
   
$
26,067
   
$
(677,822
)
 
$
1,032,982
 
  Goodwill
   
447,951
     
429,418
     
     
877,369
 
  Deposits
   
     
37,000
     
     
37,000
 
Total
   
2,132,688
     
492,485
      (677,822    
1,947,351
 
                                 
Accumulated Amortization:
                               
  Patents
   
(548,327
)
   
(76,422
)
   
142,566
     
(482,183
)
  Goodwill
   
(60,712
)
   
     
     
(60,712
)
Total
   
(609,039
)
   
(76,422
)
   
142,566
     
(542,895
)
                                 
Net Other Long Term Assets
 
$
1,523,649
   
$
416,063
   
$
(535,256
)
 
$
1,404,456
 
                                 
Year ended December 31, 2015:
                               
Cost:
                               
  Patents
 
$
1,844,595
   
$
92,033
   
$
(251,891
)
 
$
1,684,737
 
  Goodwill
   
447,951
     
     
     
447,951
 
  Deposits
   
     
     
     
 
Total
   
2,292,546
      92,033       (251,891 )     2,132,688  
                                 
Accumulated Amortization:
                               
  Patents
   
(507,644
)
   
(104,433
)
   
63,750
     
(548,327
)
  Goodwill
   
(60,712
     
     
     
(60,712
)
Total
   
(568,356
)
   
(104,433
)
   
63,750
     
(609,039
)
                                 
Net Other Long Term Assets
 
$
1,724,190
   
$
(12,400
)
 
$
(188,141
)
 
$
1,523,649
 

 
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 $76,000 and $104,000 for the years ended December 31, 2016 and 2015, respectively. Based upon the current status of the above intangible assets, the aggregate amortization expense is estimated to be approximately $68,000 for each of the next five fiscal years. The Company tests intangible assets with finite lives upon significant changes in the Company's business environment. The testing resulted in approximately $535,000 and $188,000 of net patent impairment charges during the years ended December 31, 2016 and 2015, respectively.  The impairment charges are related to the Company's ongoing analysis on which specific patents in specific countries the Company intends to continue to pursue.