Note 15 - Patents and Other Intangibles

3 Months Ended

Mar. 31, 2013

Intangible Assets Disclosure [Text Block]

15. Patents and Other Intangibles

Details of intangible assets are summarized as follows:

	March 31, 2013						December 31, 2012
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Patents	$	1,335,130	$	383,236	$	951,894	$	1,625,292	$	458,831	$	1,166,461
Deferred Patents		670,076		--		670,076		754,113		--		754,113
	$	2,005,206	$	383,236	$	1,621,970	$	2,379,405	$	458,831	$	1,920,574

As of March 31, 2013, the Company concluded that certain of its assets, primarily related to its Fortical business, are impaired as a result of recent events negatively impacting operations, including regulatory recommendations by an advisory committee to the FDA and the related impact on Fortical manufacturing revenues and royalties (see Note 5).  As a result, during the first quarter of 2013, the Company wrote-off impaired patent applications in the aggregate amount of $309,000, which are reflected within the line item impairment charges in the accompanying consolidated statement of operations.  During the first quarter of 2012, the Company wrote-off impaired patent and trademark applications in the aggregate amount of $55,000 as well as fully amortized expired trademarks in the aggregate amount of $144,000, which are reflected within general and administrative expenses in the accompanying statements of operations.

Patents are intangible assets with definite useful lives and therefore continue to be amortized. Amortization expense amounted to $34,000 and $27,000 for the three months ended March 31, 2013 and March 31, 2012, respectively. The weighted-average remaining amortization period for patents at March 31, 2013 was approximately 11 years. Future amortization expense on intangible assets over the next five years is estimated as follows:

2013	$	105,000
2014		123,000
2015		97,000
2016		80,000
2017		49,000
	$	454,000