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Other Assets
9 Months Ended
Sep. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets

5. OTHER ASSETS

 

Other assets at September 30, 2018 consisted of the non-current portion of a licensing fee of $21,000 and $6,649 in refundable deposits. At December 31, 2017, the balance of $6,649 consisted solely of refundable deposits.

 

In April, 2018, the Company entered into an exclusive Patent License Agreement relating to intellectual property to be utilized in underwater breathing systems supplying breathing air to divers at low pressure. Under the license agreement, the Company paid an initial license fee through the issuance of 759,422 shares of common stock with a fair value of $30,000. Amortization expense recognized under the license agreement totaled $1,500 and $3,000 for the three and nine month periods ended September 30, 2018, respectively. The license agreement further provides for royalties to be paid based on annual net revenues achieved utilizing the contracted technology.

 

As the Company’s product intended to utilize the contracted technology is still in the development stage and no sales are anticipated at least through calendar 2018, no contingent liability has been recognized.