INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2013

3. INTANGIBLE ASSETS

Intangible assets consist of patents, patent applications, licenses and covenants not to compete arising from business combinations. Capitalized patent application costs are included with patents. Intangible assets are amortized on a straight-line basis over their estimated useful lives or terms of their agreement, whichever is shorter. The Company wrote off costs related to patent applications of $23,000 in 2012. No other impairment adjustments to intangible assets were made during the years ended December 31, 2013 or 2012.

Intangible assets at December 31, 2013 and 2012 consist of the following:

	December 31, 2013					December 31, 2012
	Gross Carrying		Accumulated			Gross Carrying		Accumulated
	Amount		Amortization			Amount		Amortization

Amortized intangible assets:
Patents	$	455,068	$	(155,970	)	$	384,464	$	(141,447	)
Licenses	100,000		(86,459		)	100,000		(83,334		)
Non-compete agreements	303,000		(292,992		)	303,000		(257,326		)
	$	858,068	$	(535,421	)	$	787,464	$	(482,107	)

	2013		2012
Aggregate amortization expense:
For the years ended December 31	$	53,314	$	54,653

Estimated amortization expense for the years ending December 31:

2014	$	25,000
2015	23,000
2016	20,000
2017	20,000
2018	18,000

In connection with the license agreements, the Company has agreed to pay royalties ranging from 3% to 5% on the sales of products subject to the agreements. The Company incurred $19,000 of expense under these agreements during 2013, and $87,000 during 2012 which have been included in selling, general and administrative expenses in the Statements of Income.