Patents and Other Intangible Assets

12 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Patents and Other Intangible Assets

NOTE 6 – PATENTS AND OTHER INTANGIBLE ASSETS

The Company owns certain patents and patents pending related to a fluorine extraction process, patents for various uses of some fluoride gases as fluorinating agents, and patents for a container to transport radioactive materials. These patents were developed in an effort to expand the possible markets for the high purity fluoride gases the Company will produce with its fluorine extraction process. In 2010, the Company was granted an additional process patent on the FEP process and during 2011 the Company started the process to file for international protections of this patent in South Africa, Japan, Russia, China, Canada, and the European Union. During 2012, the Company was granted additional process patents for the FEP process. At the present time, the final value of this patent technology or the feasibility of expanding the fluoride gas markets through the use of this newly patented technology is uncertain.

In late 2010, management became reasonably certain that the NRC would issue the operating license for the planned de-conversion facility in New Mexico about mid-2012 and began in 2011 to capitalize certain costs associated with the licensing and planning process. Previous to 2011, these costs were included as part of research and development expense. During 2012 and 2011, the costs capitalized with regard to this facility totaled approximately $1,175,000 and $3,300,000, respectively. In October 2012, the NRC issued the Company a 40 year construction and operating license. The license will be amortized over its 40 year life.

The following table summarizes the patent and intangible activity for the years ended December 31, 2012 and 2011:

	2012		2011
Beginning	$	3,657,481	$	362,654
Additions		1,175,796		3,294,827
Ending		4,833,277		3,657,481
Accumulated amortization		(258,087)		(157,319)
	$	4,575,190	$	3,500,162

During the years ended December 31, 2012 and 2011, the Company recognized $100,768 and $23,410 of amortization expense, respectively.

Patent and other intangible asset amortization is based on the remaining life of the asset and estimated amortization expense is as follows:

Years ending December 31,
2013	$	119,648
2014		126,315
2015		126,315
2016		126,315
2017		126,315
Thereafter		3,950,282
	$	4,575,190