Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.7.0.1
Intangible Assets
3 Months Ended
Jan. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

5. INTANGIBLE ASSETS

 

Pursuant to our license agreement with the University of Pennsylvania, the Company is billed actual patent expenses as they are passed through from Penn and are billed directly from our patent attorney. The following is a summary of intangible assets as of the end of the following fiscal periods:

 

    January 31, 2017     October 31, 2016  
             
License   $ 776,992     $ 776,992  
Patents     5,056,042       4,980,610  
Software     25,625       19,625  
Total intangibles     5,858,659       5,777,227  
Accumulated Amortization     (1,522,516 )     (1,448,106 )
Intangible Assets   $ 4,336,143     $ 4,329,121  

 

The expirations of the existing patents range from 2017 to 2037 but the expirations can be extended based on market approval if granted and/or based on existing laws and regulations. Capitalized costs associated with patent applications that are abandoned without future value are charged to expense when the determination is made not to pursue the application. No patent applications with future value were abandoned or expired and charged to expense in the three months ended January 31, 2017 or 2016. Amortization expense for intangible assets is included in research and development expenses and aggregated $74,410 and $57,946 for the three months ended January 31, 2017 and 2016, respectively.

 

Estimated amortization expense for the next five years is as follows:

 

Year ended October 31,

 

2017 (Remaining)   $ 223,000  
2018     299,000  
2019     296,000  
2020     290,000  
2021     290,000