Annual report pursuant to Section 13 and 15(d)

Note 5 - Intangible Assets

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Note 5 - Intangible Assets
12 Months Ended
Dec. 31, 2014
Notes  
Note 5 - Intangible Assets

Note 5 – Intangible Assets

 

In March 2013, the Company purchased certain intangible assets related to the commercial production of Camelina.  See further discussion on acquisition in Note 10.  The intangible assets include three patents and the related intellectual property associated with these patents.  These intangible assets acquired have an expected useful life of 17 years and are carried at cost less any accumulated amortization and any impairment losses.

 

Amortization is calculated using the straight-line method to allocate the cost of the intangible assets  over their estimated useful lives of 17 years.  Any future costs associated with the maintenance of these patents with indefinite lives will be capitalized and not amortized.  The Intangible Assets as of the year ended December 31, 2014 is shown in the following table:

 

 

 

December 31,

 

2014

2013

 

 

 

Intangible Assets

4,168,841

$4,168,841

 

 

 

Less accumulated amortization

(441,117)

(195,892)

 

 

 

Intangible Assets, net

$3,727,724

$3,972,949

 

Amortization expense for intangible assets was $245,225 for the year ended December 31, 2014 and none in 2013.  The estimated amortization expense for the next five years approximates $245,000 annually.