INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 6: INTANGIBLE ASSETS

Intangible assets consisted of the following:

	December 31,		December 31,
	2014		2013
Patents	$	1,630,000	$	4,794,853
Capitalized license costs		200,000		-
Software		203,038		105,839
Intangible assets		2,033,038		4,900,692
Less: accumulated amortization		(112,393)		(505,059)
Total intangible assets, net	$	1,920,645	$	4,395,633

Intangible assets amounted to $1,920,645 and $4,395,633 as of December 31, 2014 and December 31, 2013, respectively, and consisted of patents, capitalized license costs and software acquired. The acquired software mainly consisted of $58,000 in laboratory software, $31,500 in the newly developed Company website and $72,200 in internal use SAP Business One ERP system which is under development. The amortization period for the purchased software is three years. Amortization expense related to software for the years ended December 31, 2014 and 2013 was $28,903 and $24,308, respectively.

Patents amounted to $1,630,000 and $4,794,853 as of December 31, 2014 and 2013, respectively, and mainly consisted of patents acquired from Acueity on September 30, 2012 in an asset purchase transaction. Patent assets are amortized based on their determined useful life, and tested annually for impairment. As discussed in Note 2, the Company has evaluated and reprioritized its research and development pipeline based on recent business strategies, and as a result has delayed plans to develop and invest further in Acueity patents for at least the next year. Because of these changed business plans related to the Acueity assets, the Company has re-evaluated the assets for potential impairment. The Company has concluded that these assets are partially impaired and the Company has recorded asset impairment charges of $2,352,626 during the year ended December 31, 2014.

The amortization period of intangible assets is from 7 to 12 years. Amortization expense related to intangible assets was $373,990 and $365,656 for years ended December 31, 2014 and 2013, respectively.

Capitalized license costs consist of fees paid to A5 Genetics KFT, Corporation, pursuant to which the Company received the world-wide (other than the European Union) exclusive license to use the software in the NextCYTE test. Amortization expense related to license costs was $16,667 for the year ended December 31, 2014.

Future estimated amortization expenses as of December 31, 2014 for the five succeeding years and thereafter is as follows:

As of December 31,		Amounts
2015	$	213,776
2016		224,804
2017		193,443
2018		169,015
2019		169,015
Thereafter		950,592
	$	1,920,645

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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