Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

5. Intangible Assets

Intangible assets are comprised of the following:

		June 30, 2019						December 31, 2018
	Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Acquired intangibles - customer lists, licenses and non-compete agreements	3-10 years		1,778,848		992,742		786,106		1,284,065		823,884		460,181
Acquired intangibles - patents and patent rights			500,000		500,000		-		500,000		500,000		-
Patent application costs	Varied (1)		1,168,155		787,951		380,204		1,168,155		746,925		421,230
		$	3,447,003	$	2,280,693	$	1,166,310	$	2,952,220	$	2,070,809	$	881,411

⁽¹⁾ Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of June 30, 2019, the weighted average remaining useful life of these assets in service was approximately 7 years.

Amortization expense for the six months ended June 30, 2019 amounted to $209,884 ($339,663 – June 30, 2018).

On March 5, 2019, the Company paid $350,000 and issued 130,435 shares of the Company’s common stock valued at $144,783 in conjunction with the signing of a Master Distributor Agreement with Advanced Cyber Security Corp. (“ACS”) to for the Company to distribute ACS’s EndpointLockV™ cyber security software exclusively in thirteen countries in Asia and Australia, and non-exclusively, in the U.S. and Middle East. The aggregate cost of $494,783 of the agreement was recorded as an intangible asset to be amortized over the expected useful life of 36 months.