Intangible Assets

9 Months Ended

Sep. 30, 2012

Notes to Financial Statements

Note 5. Intangible Assets

Intangible assets as of the balance sheet dates consisted of the following:

	September 30, 2012			December 31, 2011
Licensed patents and patent rights	$	50,000		$	50,000
Patents		41,004			41,004
Less: accumulated amortization		(57,171	)		(51,611	)
Intangibles, net	$	33,833		$	39,393

The Company’s intangible assets are carried at the legal cost to obtain them. Intangible assets are amortized using the straight-line method over the estimated useful life. Useful lives are eight to fifteen years for licensed patents and patent rights, and seventeen years for patents. Amortization expense totaled $1,853 and $5,559 for the three and nine months ended September 30, 2012 and $1,428 and $5,559 for the three and nine months ended September 30, 2011, respectively. Impairment will be considered in accordance with the Company’s impairment policy, which requires at least an annual analysis. No impairment was recognized as of September 30, 2012.