INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2011

NOTE 4 - INTANGIBLE ASSETS

Intangible assets represent the costs of patents and medical formulas. Medical formulas are amortized from the dates acquired over their individual identifiable useful life, typically ten to thirteen years for our products.During the period ended September 30, 2011, the Company reassessed its method of amortizing medical formulas and patents and the Company started amortizing them from the dates acquired rather than the date they are place into production. The accounting change is being accounted for prospectively as a change in an accounting estimate and resulted in an increased amortization expense for the nine months ended September 30, 2011 by $1,799,579. Amortization expense relating to intangible assets was $2,511,751 and $682,856 for the nine months ended September 30, 2011 and 2010, respectively. Patents held by the Company have not expired. Patents are amortized over the lesser of the expected life of the related product or the life of the patent. Medical formulas and patents for medical formulas typically do not have a residual value at the end of their amortization period. Medical formulas continue to provide benefits to the Company and are included in the Company's evaluation for possible impairment.

Intangible assets consist of the following as of September 30, 2011:

			September 30, 2011
	Gross Carrying		Accumulated
Amortized Intangible Assets	Amount		Amortization		Total
Medical formulas	$	29,331,811	$	4,676,227	$	24,655,584
Patents		5,973,601		298,680		5,674,921
Total	$	35,305,412	$	4,974,907	$	30,330,505