ASSETS

12 Months Ended

Dec. 31, 2015

ASSETS

ASSETS

Inventories

Inventories consist of the following:

	December 31,
	2015		2014
Raw materials and supplies	$	77,649	$	191,186
Work in process		90,540		-
Finished goods		86,254		74,773
Total	$	254,443	$	265,959

Property and Equipment

Property and equipment consists of the following:

	December 31,
	2015			2014
Computer equipment	$	5,254	$	5,254
Office furniture and fixtures		33,376		33,376
Production equipment		276,479		266,939
Software		338,976		338,976
Total cost		654,085		644,545
Less accumulated depreciation		618,984		590,034
Property and equipment, net	$	35,101	$	54,511

Depreciation expense for the years ended December 31, 2015 and 2014 was $28,950 and $63,450, respectively.

Intangible Assets

Amortizable intangible assets consist of the following:

December 31, 2015

	Amount		Accumulated Amortization			Net Amount		Useful Lives (years)
Patent & Trademarks	$	417,597	$	57,593		$	360,004	7 - 15
Customer Contracts		611,119		127,316			483,803	10
Sensum+® License (from CRI)		234,545		60,554			173,991	10
Vesele® trademark		25,287		3,886			21,401	8
Novalere Mfg. Contract		4,681,000		419,340			4,261,660	10
Total	$	5,969,548	$	(668,689	)	$	5,300,859

December 31, 2014

	Amount		Accumulated  Amortization			Net Amount		Useful Lives (years)
Patent & Trademarks	$	264,321	$	(23,671	)	$	240,650	7 - 14
Customer Contracts		611,119		(62,262	)		548,857	10
Sensum+® license (from CRI)		272,545		(31,250	)		241,295	10
Vesele® trademark		25,287		(717	)		24,570	8
Total	$	1,173,272	$	(117,900	)	$	1,055,372

Amortization expense for the years ended December 31, 2015 and 2014 was $550,789 and $114,006, respectively. Expected future amortization expense at December 31 2015 is approximately $589,400 for each of the next five years and $2,354,000 thereafter.

Goodwill

The changes in the carrying value of the Company’s goodwill for the years ended December 31, 2015 and 2014 is as follows: 

	December 31, 2015
Beginning balance December 31, 2013	$	421,372
Purchase price adjustment for acquisition of Semprae Laboratories, Inc. in 2013		7,853
Ending Balance December 31, 2014		429,225
Acquisition of Novalere (see Note 3)		120,143
Release of valuation allowance in connection with acquisition of Novalere (see Note 10)		759,428
Impairment of valuation allowance in connection with acquisition of Novalere (see Note 10)		(759,428	)
Ending Balance December 31, 2015	$	549,368