Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
9 Months Ended
Jul. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

5. INTANGIBLE ASSETS

 

Pursuant to our license agreement with the University of Pennsylvania (“Penn”), 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:

 

    July 31, 2017     October 31, 2016  
License   $ 776,992     $ 776,992  
Patents     5,763,542       4,980,610  
Software     83,639       19,625  
Total Intangibles     6,624,173       5,777,227  
Accumulated Amortization     (1,682,012 )     (1,448,106 )
Intangible Assets   $ 4,942,161     $ 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. Patent applications having a net book value of $17,745 and $107,626 were abandoned and charged to Research and Development Expenses in the statement of operations for the three and nine months ended July 31, 2017. No patent applications were abandoned during the three or nine months ended July 31, 2016. Amortization expense for intangible assets is included in research and development expenses and aggregated $87,000, $239,155, $64,440 and $183,184 for the three and nine months ended July 31, 2017 and 2016, respectively.

 

At July 31, 2017, the estimated amortization expense by fiscal year based on the current carrying value of intangible assets is as follows:

 

2017 (Remaining)   $ 87,001  
2018     348,003  
2019     345,603  
2020     329,959  
2021     320,124  
Thereafter     3,511,471  
Total   $ 4,942,161