Intangible Assets

12 Months Ended

Dec. 31, 2012

Notes to Financial Statements

Note 9. Intangible Assets

Intangible assets as of December 31, 2012 and 2011 consisted of the following:

	2012			2011
Licensed patents and patent rights	$	50,000		$	50,000
Patents		41,004			41,004
Website development		-			-
Less: accumulated amortization		(59,024	)		(51,611	)
Intangibles, net	$	31,980		$	39,393

Patent under Licensing

In 2006, the Company entered into a patent license agreement with The Procter & Gamble Company, effective July 1, 2006. The agreement licenses patent rights and know-how for certain hemorrhoid treatment pads and related coatings. The term of the agreement is five years with a five year automatic renewal option. In consideration of this agreement, the Company paid a one-time, non-refundable engagement fee, and pays royalties based on net sales of such licensed products.

The Company has capitalized this engagement fee and amortizes the capitalized cost over the expected term of the patent license agreement. Amortization of $5,000 and $5,000 in connection with this licensed patent was recognized in the years ended December 31, 2009 and 2008. All royalties due pursuant to the terms of the agreement are expensed as incurred. Impairment is considered in accordance with the Company’s impairment policy. No impairment was recognized as of December 31, 2009 or 2008.