6. Balance Sheet Components

Land, Property and Equipment

Land, property and equipment at December 31, 2018 and 2017 consisted of the following:


	December 31,		December 31,
	2018		2017
Land	$	396,247	$	396,247
Lab equipment		410,522		811,087
Clinical equipment		64,870		64,870
Software		62,637		62,637
Total property and equipment at cost		934,276		1,334,841
Accumulated depreciation		(173,659)		(112,773)
Property and equipment, net	$	760,617	$	1,222,068

During fiscal year 2018, certain lab equipment in the amount of $407,092 was reclassified to other assets to more properly reflect the asset purpose. Depreciation and amortization expense was $60,886 and $60,124 in the years ended December 31, 2018 and 2017, respectively.

Goodwill

The change in the carrying amount of goodwill for the year ended December 31, 2018 and 2017 was as follows:


	December 31,		December 31,
	2018		2017
Beginning balance	$	5,210,821	$	—
Goodwill acquired in conjunction with the Napo merger		—		22,037,821
Impairment		(5,210,821)		(16,827,000)
Ending balance	$	—	$	5,210,821

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired. Concurrent with the Napo Merger in July 2017, the Company recorded goodwill of $22.0 million, which was allocated to the Human Health segment. The Company believes this goodwill consists principally of expected synergies to be realized by combining capabilities, technology, and data. In accordance with ASC 350, goodwill will not be amortized but will be tested for impairment at least annually. Goodwill created as a result of the acquisition is not deductible for tax purposes. At December 31, 2017, the Company determined that goodwill was impaired and recorded an impairment loss of $16.8 million in the consolidated statement of operations. At December 31, 2018 the Company determined that the entire remaining balance of goodwill was impaired and recorded an impairment loss of $5.2 million in the consolidated statement of operations.

Intangible assets, net

Intangible assets, net of amortization at December 31, 2018 and 2017 consist of the following:


	December 31,		December 31,
	2018		2017
Developed technology	$	25,000,000	$	25,000,000
Accumulated developed technology amortization		(2,361,111)		(694,445)
Developed technology, net		22,638,889		24,305,555
In process research and development		8,800,000		11,100,000
Impairment		—		(2,300,000)
In process research and development, net		8,800,000		8,800,000
Trademarks		300,000		300,000
Accumulated trademark amortization		(28,333)		(8,333)
Trademarks, net		271,667		291,667
Total intangible assets, net	$	31,710,556	$	33,397,222

At December 31, 2017, the Company determined that In process research and development was impaired and recorded an impairment loss of $2.3 million in the consolidated statement of operations. At December 31, 2018, the Company determined that none of its intangible assets were impaired.

Amortizable intangible assets include Developed technology and Trademarks. Intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives of fifteen years. Amortization expense of finite-lived intangibles was $1,686,657 and $702,778 for the years ended December 31, 2018 and 2017, respectively.

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of December 31, 2018:


		Amounts
2019		$ 1,686,667
2020		$ 1,686,667
2021		$ 1,686,667
2022		$ 1,686,667
2023		$ 1,686,667
Thereafter		14,477,222
		$ 22,910,557

Accrued Liabilities

Accrued liabilities at December 31, 2018 and 2017 consist of the following:


	December 31,		December 31,
	2018		2017
Accrued vacation	$	287,326	$	264,304
Accrued payroll		300,040		150
Accrued payroll tax		57,306		30,617
Accrued interest		917,482		659,961
Accrued consulting		660,370		1,785
Accrued research and development costs		106,607		668,850
Accrued legal costs		439,682		—
Accrued audit and tax services		96,150		40,000
Deferred rent		—		4,584
Accrued other		2,074,478		533,882
Total	$	4,939,441	$	2,204,133