Note 5. Intangible Assets

Developed technology and trade names were acquired as part of the Veloxum transaction in May 2014. Acquisition related intangibles are amortized over their estimated useful lives based on expected future benefit.

The carrying amounts of the intangible assets as of July 31, 2015 and 2014 are as follows:

	Intangible Assets, Gross						Accumulated Amortization						Intangible Assets, Net				Weighted
					July 31,						July 31,		July 31,				Average
	July 31, 2013		Additions		2014		July 31, 2013		Expense		2014		2013		July 31, 2014		Useful Life (Years)
Developed technology	$	-	$	4,423,375	$	4,423,375	$	-	$	(133,203)	$	(133,203)	$	-	$	4,290,172	7
Trade names		-		816,800		816,800		-		(24,597)		(24,597)		-		792,203	7
Total intangible assets, net	$	-	$	5,240,175	$	5,240,175	$	-	$	(157,800)	$	(157,800)	$	-	$	5,082,375

					July 31,						July 31,		July 31,
	July 31, 2014		Additions		2015		July 31, 2014		Expense		2015		2014		July 31, 2015		Useful Life (Years)
Developed technology	$	4,423,375	$	343,911	$	4,767,286	$	(133,203)	$	(664,694)	$	(797,897)	$	4,290,172	$	3,969,389	7
Trade names		816,800				816,800		(24,597)		(116,686)		(141,283)		792,203		675,517	7
Total intangible assets, net	$	5,240,175	$	343,911	$	5,584,086	$	(157,800)	$	(781,380)	$	(939,180)	$	5,082,375	$	4,644,906

During the fiscal year ended July 31, 2015, the Company developed new features and added functionality to its software as requested by its partner, PC Driver, under the joint development and license agreement (Note 2). During the year ended July 31, 2015, the Company incurred $343,911 of additional development cost that was capitalized as intangible asset.

The amortization expense associated with intangible assets was $781,380 and $157,800 for the years ended July 31, 2015 and 2014, all of which was recorded in general and administrative expenses. As of July 31, 2015, the amortization expense related to identifiable intangible assets in future periods is expected to be as follows:

					Total
	Developed		Trade		intangible
Year ending July 31,	technology		names		assets
2016		681,041		116,686		797,727
2017		681,041		116,686		797,727
2018		681,041		116,686		797,727
2019		681,041		116,686		797,727
Thereafter		1,245,225		208,773		1,453,998
Total intangible assets subject to amortization		3,969,389	$	675,517	$	4,644,906

A long-lived asset or asset group that is held and used should be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount for the long-live asset or asset group might not be recoverable. As a result, a company is not required to perform an impairment analysis if indicators of impairment are not present. Instead, a company would assess the need for an impairment write-down only if an indicator of impairment (also referred to as a triggering event) is present. As of July 31, 2015, no triggering events have occurred which would indicate that the acquired Veloxum developed technology and trade name values may not be recoverable. The strategy and plans that had been put in place at the original acquisition date were still effective and progressing as planned.