INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2015

3. INTANGIBLE ASSETS

Intangible assets consist of patents, patent applications, licenses and covenants not to compete. 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 abandoned patent applications of $46,000 in 2015. There were no impairment adjustments to intangible assets during the year ended December 31, 2014.

Intangible assets at December 31, 2015 and 2014 consist of the following:


	December 31, 2015				December 31, 2014
	Gross Carrying		Accumulated		Gross Carrying		Accumulated
	Amount		Amortization		Amount		Amortization

Amortized intangible assets:
Patents	$	410,053	$	(81,248)	$	402,789	$	(62,676)
License		50,000		(42,709)		50,000		(39,584)
Non-compete agreements		—		—		100,000		(96,658)
	$	460,053	$	(123,957)	$	552,789	$	(198,918)


	2015		2014
Aggregate amortization expense:
For the years ended December 31	$	25,040	$	25,775

Estimated amortization expense for the years ending December 31:


2016	$	24,000
2017		24,000
2018		22,000
2019		20,000
2020		20,000

In connection with the license agreement, the Company has agreed to pay royalties ranging from 3% to 5% on the sales of products subject to the agreements. The Company incurred $15,000 of expense under these agreements during 2015, and $16,000 during 2014 which are included in selling, general and administrative expenses in the Statements of Income.