Intangible Assets

3 Months Ended

Mar. 31, 2019

Intangible Assets

Intangible Assets

Note 4: INTANGIBLE ASSETS

Intangible assets that are subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. Assets not subject to amortization are tested for impairment at least annually. The Company has intangible assets subject to amortization as described in the next paragraph. These costs were included in intangible assets on the balance sheet and amortized as indicated in the next paragraph. The Company will periodically review these and other intangible assets for impairment that it may acquire whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company will recognize an impairment loss when the sum of expected undiscounted future cash flows is less that the carrying amount of the asset, to be measured as the difference between the asset’s estimated fair value and its book value.

On June 8, 2018, the Company acquired certain patents and patent applications, a trademark and an internet domain related to “Medtainer^®” pursuant to an Asset Purchase Agreement, dated as of April 16, 2018, and amended on June 8, 2018, by and between the Company and an unrelated party, in consideration of the issuance of 2,631,252 shares of common stock. These assets and the associated goodwill have been apportioned as follows, based upon a report that the Company obtained from an independent valuation firm:

Estimated Asset Valuation at March 31, 2019:

	Weighted Average	Gross Carrying		Accumulated
Description	Estimated Useful Life	Value		Amortization			Net Amount
Certain U.S. patents	15 years	$	435,000	$	(23,188	)	$	411,812
Certain U.S. patents	15 years		435,000		(22,315	)		412,685
Certain Canadian
patents	20 years		260,000		(10,521	)		249,479
Certain European
patents	14 years		30,000		(1,697	)		28,303
Molds	15 years		150,000		(7,995	)		142,005
Trademark	Indefinite life		220,000		—			220,000
Domain name	Indefinite life		2,000		—			2,000
Intangible Totals		$	1,532,000	$	(65,716	)	$	1,466,284
Goodwill		$	1,020,314	$	—		$	1,020,314

Estimated Asset Valuation at December 31, 2018:

	Weighted Average	Gross Carrying		Accumulated
Description	Estimated Useful Life	Value		Amortization			Net Amount
Certain U.S. patents	15 years	$	435,000	$	(16,060	)	$	418,940
Certain U.S. patents	15 years		435,000		(15,455	)		419,545
Certain Canadian patents	20 years		260,000		(7,286	)		252,714
Certain European patents	14 years		30,000		(1,175	)		28,825
Molds	15 years		150,000		(5,538	)		144,462
Trademark	Indefinite life		220,000		—			220,000
Domain name	Indefinite life		2,000		—			2,000
Intangible Totals		$	1,532,000	$	(45,514	)	$	1,486,486
Goodwill		$	1,020,314	$	—		$	1,020,314