INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2019

Notes to Financial Statements

NOTE 6 - INTANGIBLE ASSETS

The Company incurred $29,144 and $47,632 of legal patent costs that were capitalized during the six months periods ended June 30, 2019 and 2018, respectively. In addition, the Company acquired a patent and developed technology with a fair value of $650,000 and in-process research and development with a fair value of $14,460,000 as part of the CHI acquisition (See Note 13). No patents were acquired through issuance of common stock shares of the Company for the six months period ended June 30, 2019. The Company purchased $280,100 of patents through the issuance of 200,000 common stock shares of the Company during the year ended December 31, 2018.

Intangible Asset Summary

The following table summarizes the estimated fair values as of June 30, 2019 of the identifiable intangible assets acquired, their useful life, and method of amortization:

	Estimated Fair Value			Remaining Estimated Useful Life (Years)		Six Months Amortization Expense
Intellectual Property	$	814,582			13.91	$	20,412
Patents		1,258,307			13.83		18,317
In-process research and development technology		14,460,000			13.83		172,143
Total	$	16,532,889				$	210,872
Less: accumulated amortization		(398,606	)
Intellectual property and patents, net		16,134,283
Less: pending patents not subject to amortization		(279,779	)
Net intangible assets subject to amortization	$	15,854,504

The net intangible asset was $16,134,283, net of accumulated amortization of $398,606, as of June 30, 2019. Amortization expense was $196,641 and $210,872 for the three and six months periods ended June 30, 2019, respectively. Amortization expense was $11,613 and $22,512 for the three and six months periods ended June 30, 2018, respectively.

The estimated aggregate amortization expense over each of the next five years is as follows:

2019	$	575,730
2020		1,150,584
2021		1,150,584
2022		1,150,584
2023		1,150,584
Thereafter		10,676,438
Total Amortization	$	15,854,504