Intangible Assets

3 Months Ended

Mar. 31, 2014

Notes to Financial Statements

Note 5. Intangible Assets

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

	March 31, 2014			December 31, 2013
Licensed patents and patent rights	$	50,000		$	50,000
Patents		41,004			41,004
NuRx licensed technology		13,200			13,200
Less: accumulated amortization		(68,965	)		(67,112	)
Intangibles, net	$	35,239		$	37,092

The Company’s intangible assets consist of patents, licensed patents and patent rights, and website development costs, and are carried at the legal cost to obtain them. Costs to renew or extend the term of intangible assets are expensed when incurred. In 2008, through our formerly majority owned subsidiary, the Company also held technology licenses and other acquired intangibles. Intangible assets are amortized using the straight-line method over the estimated useful life. Useful lives are as follows: patents, 17 years; patents under licensing, 10 years; website development costs, three years, and in 2008, acquired intangibles had a weighted average life of 15 years. Amortization expense for the three months ended March 31, 2014 and 2013 totaled $1,853 and $1,853, respectively.

On March 1, 2013, the Company entered into an Exchange Agreement with NuRx and QND, pursuant to which the Company exchanged the shares of NuRx common stock received under the terms of the settlement agreement with NuRx in July 2011 (the "Settlement Shares") for certain patents, trademarks and other intellect property formerly held by NuRx and QND covering point-of-care lateral flow diagnostics (RapidSense™) and related oral fluid collection technologies. The Company has recorded the value associates with this exchange at $13,200, and will amortize these costs over the remaining useful lives of the intellectual property exchanged.