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6. INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
6. INTANGIBLE ASSETS

Patents, trademarks and intellectual property, consisting of trade secrets and formulas are recorded in accordance with Accounting Standards Codification 350, Intangibles – Goodwill and Other (ASC 350). As such, patents are initially measured based on their fair values.  The patents which have been granted are being amortized over a period of 20 years.  Patents which are pending or are being developed are not amortized until a patent has been issued.  The amount of intangible assets, consisting of patents, as of December 31, 2014 is as follows:

 

    2014     2013  
Gross amount of patents   $ 145,529     $ 129,618  
Less amount of accumulated amortization     (7,428 )     (6,071 )
Net value of patents   $ 138,101     $ 123,547  

 

Amortization expense for the fiscal years ended December 31, 2014 and 2013 was $1,357 and $1,357, respectively.  During the year ended December 31, 2013, the Company abandoned a patent application that was not permitted by the U.S. Patent Office and wrote off $34,005 of accrued costs.

 

The estimated amortization expense, based on current intangible balances, for the next fiscal years beginning January 1, 2015 is as follows:

 

 2015   $ 1,357  
 2016   $ 1,357  
 2017   $ 1,357  
 2018   $ 1,357  
 2019   $ 1,357