INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 6: INTANGIBLE ASSETS

Intangible assets consisted of the following:

	June 30,			December 31,
	2016			2015
Patents	$	1,630,000		$	1,630,000
Capitalized license costs		-			200,000
Software		113,540			113,540
Intangible assets		1,743,540			1,943,540
Less: Accumulated amortization		(296,530	)		(242,975	)
Total intangible assets, net	$	1,447,010		$	1,700,565

Intangible assets amounted to $1,743,540 and $1,943,540 as of June 30, 2016 and December 31, 2015, respectively, and consisted of patents, capitalized license costs and software acquired. The amortization period for the purchased software is 3 years. Amortization expense related to software for the three months ended June 30, 2016 and 2015 was $7,857 and $11,018, respectively and $15,713 and $22,829 for the six months ended June 30, 2016 and 2015, respectively.

Patents amounted to $1,630,000 as of June 30, 2016 and December 31, 2015, 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. The amortization period was from 7 to 12 years. Amortization expense related to patents was $37,254 for the three months ended June 30, 2016 and 2015, respectively and $74,508 for the six months ended June 30, 2016 and 2015, 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. As the Company shifted its focus to developing pharmaceutical products and discontinued NextCYTE test development, the A5 agreement was terminated in February 2016 and the entire net assets of $163,333, including $36,666 in accumulated amortization was written off.

Future estimated amortization expenses as of June 30, 2016 for the five succeeding years is as follows:

For the Year Ending December 31,	Amounts
2016 (includes the remainder of the year)	$	87,600
2017		169,576
2018		149,623
2019		149,015
2020		149,015
Thereafter		742,181
	$	1,447,010