Annual report pursuant to Section 13 and 15(d)


12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  



The Company holds certain patents, intellectual property and rights related to the development of Camelina as a biofuels feedstock and continues to incur costs related to patent license fees and patent applications for Camelina sativa plant improvements. These 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. The termination dates of our earliest patents will begin to occur in 2029. Any future costs associated with the maintenance of these patents and patent and registration costs for any new patents that are essential to our 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 $1.9 million is amortized on a straight-line basis over 15 years. The patent license assets as of the year ended December 31, 2020 and 2019 is shown in the following table:


    December 31
    2020   2019
Patent license fees   $ 4,442,553     $ 4,187,902  
Refinery permits     1,921,082       —    
Less accumulated amortization     (2,182,889 )     (1,686,310 )
Intangible Assets, Net   $ 4,180,746     $ 2,501,592  


Amortization expense for intangible assets was approximately $150,000 and $245,000 for the years ended December 31, 2020 and 2019, respectively. The estimated amortization expense for the next five years is expected to be approximately $390,000 annually.