Quarterly report pursuant to Section 13 or 15(d)


9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  

NOTE D - Intangible Assets


Intangible assets consist of patent license fees and refinery permits. Through a 2013 acquisition, the Company acquired certain patents, intellectual property and rights related to the development of Camelina as a biofuels feedstock, as a result of which the Company continues to incur costs related to patent license fees and patent applications for Camelina sativa plant improvements. These acquired assets include three patents and the related intellectual property associated with these patents. These three patents 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 over their remaining patent life. These three purchased patents expire in 2029. Any future costs associated with the maintenance of these patents and patent and registration costs for any additional patents that are essential to the Company’s business will be capitalized and amortized over the life of the patent once issued. Upon the Company’s acquisition of the Bakersfield Biorefinery, the Company acquired necessary permits for the operation of the facility. The permit cost of $3.4 million is amortized on a straight-line basis over 15 years. The intangible assets as of the quarter ended September 30, 2020 and 2019 is shown in the following table:


    September 30,   September 30,
    2020   2019
Patent license fees     4,442,553       4,187,902  
Refinery permits     3,420,700       —    
Less accumulated amortization     (2,182,889 )     (1,686,310 )
Intangible Assets, Net     5,680,364       2,501,592  


Amortization expense for intangible assets was approximately $95,000 and $61,000 for the quarters ended September 30, 2020 and 2019, respectively.