Annual report pursuant to section 13 and 15(d)

INTANGIBLE ASSETS

v2.4.0.6
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

 

NOTE 4 – INTANGIBLE ASSETS

 

Intangible assets were acquired from the acquisition by the Company’s wholly owned subsidiary, Sampo and consisted of the following:

   

December 31,

2012

   

December 31,

2011

 
                 
Patent rights   $ 500,925     $ -  
Accumulated amortization     (8,773)       -  
Intangible assets, net   $ 492,152     $ -  

 

The life of the patent rights shall be based on the expiration dates of the patent rights as follows:

 

US Patent 6,161,149 expires March 13, 2018 or estimated useful life of 5.33 years;

US Patent 6,772,229 expires December 1, 2019 or estimated useful life of 7.05 years; and

US Patent 8,015,495 expires November 16, 2023 or estimated useful life of 11.01 years.

 

The patent rights are being amortized on a straight-line basis over its respective estimated useful lives. The Company assesses fair market value for any impairment to the carrying values.  As of December 31, 2012 and 2011 management concluded that there was no impairment to the acquired assets.

 

The weighted average amortization period on total is approximately 7.80 years. Amortization expense for the years ended December 31, 2012 and 2011 was $8,773 and $0, respectively. Future amortization of intangible assets, net is as follows:

    2013     70,186  
         
    2014     70,186  
    2015     70,186  
    2016     70,186  
                           2017 and thereafter                   211,408  
         
         
   Total   $ 492,152