Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Intangible Assets

v3.4.0.3
Note 5 - Intangible Assets
3 Months Ended
Mar. 31, 2016
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.  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 March 31, 2016 is shown in the following table:

 

March 31,

December 31,

 

2016

2015

 

 

 

Intangible Assets

4,168,841

$4,168,841

 

 

 

Less accumulated amortization

(747,650)

(686,343)

 

 

 

Intangible Assets, net

$3,421,191

$3,482,498

Amortization expense for intangible assets was approximately $61,000 and $26,000 for the three months ended March 31, 2016 and 2015, respectively.  The estimated amortization expense for the next five years approximates $245,000 annually.