INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 7: INTANGIBLE ASSETS

Intangible assets consisted of the following:

	December 31,			December 31,
	2016			2015
Patents	$	639,000		$	1,630,000
Capitalized license costs		-			200,000
Software		113,540			113,540
Intangible assets		752,540			1,943,540
Less: accumulated amortization		(112,100	)		(242,975	)
Total intangible assets, net	$	640,440		$	1,700,565

Intangible assets amounted to $640,440 and $1,700,565 as of December 31, 2016, and December 31, 2015, respectively, and consisted of patents, capitalized license costs and software acquired. The amortization period for the purchased software is three years. Amortization expense related to software for the years ended December 31, 2016 and 2015 was $28,806 and $30,820, respectively.

Patent assets are amortized based on their determined useful life, and tested annually for impairment. We continuously evaluate and reprioritize our research and development pipeline based on the most recent business strategies, and as a result have delayed plans to develop and invest further in Acueity patents and technologies. In 2016 and 2015, we evaluated the Acueity assets and determined that the assets were impaired for the year ended December 31, 2016 and we reduced the net carrying value of the patents by $718,970. No such impairment was recorded in 2015.

The amortization period of the patents is from 7 to 12 years. Amortization expense related to intangible assets was $149,015 and $199,437 for the years ended December 31, 2016 and 2015, respectively.

Capitalized license costs consisted 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. The Company terminated this agreement in 2016 and wrote-off the remaining balance of the asset of $163,333 in 2016. Amortization expense related to license costs was $0 and $16,667 for the years ended December 31, 2016 and 2015, respectively. 

Future estimated amortization expenses as of December 31, 2016, for the five succeeding years and thereafter is as follows:

Years Ending December 31,	Amounts
2017	$	90,846
2018		70,893
2019		70,285
2020		70,285
2021		70,285
Thereafter		267,846
	$	640,440