Annual report pursuant to Section 13 and 15(d)

Note J - Patents

v3.19.1
Note J - Patents
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE J — PATENTS
 
   
December 31, 2018
   
December 31, 2017
 
   
Cost
   
Impairment
   
Accumulated Amortization
   
Net
   
Cost
   
Impairment
   
Accumulated Amortization
   
Net
 
Patents-foundation intellectual property
  $
1,377,863
    $
-
    $
(942,590
)   $
435,273
    $
1,377,863
    $
-
    $
(787,821
)   $
590,042
 
Epidural-Apad acquired patents
   
2,639,647
     
(1,539,794
)    
(1,099,853
)    
-
     
2,639,647
     
-
     
(439,941
)    
2,199,706
 
Total
  $
4,017,510
    $
(1,539,794
)   $
(2,042,443
)   $
435,273
    $
4,017,510
    $
-
    $
(1,227,762
)   $
2,789,748
 
 
Patents are amortized utilizing the straight-line method over estimated useful lives ranging from
3
to
20
years. Amortization expense was
$814,681
 and
$510,676
for the year ended
December 31, 2018
and
2017,
respectively. The annual amortization expense expected to be recorded for existing intangibles assets for the years
2019
 through
2023
 is approximately 
$53,000,
$53,000,
$53,000,
$47,000
and
$33,000.
 
On
July 13, 2017,
Milestone Scientific consummated an Asset Purchase Agreement (the “Agreement”) with APAD Octrooi B.V. and APAD B.V. (each, a “Seller” and collectively, the “Sellers”) pursuant to which Milestone Scientific acquired certain patent rights and other intellectual property rights related to the Sellers’ computer-controlled injection instrument (the “Purchased Assets”) accounted for as an asset acquisition. On the closing date, Milestone Scientific issued to the Sellers an aggregate of
1,646,358
shares of its common stock, valued at approximately
$2,486,000
for the Purchased Assets which shares are subject to certain post-closing upward or downward adjustments
not
to exceed
twenty-five
percent of the initial shares as of the purchase date or
250,000
Euros, as defined in the agreement. In
2018
Milestone Scientific finalized the payment for the APAD patents with the issuance of 
244,959
shares at a cost of
$286,601.
The patents purchased in the amount of approximately
$2,639,000
have been capitalized and were amortized over their
three
-year estimated useful life.
 
During
2018,
the Company determined  that the APAD Patents purchased in
2017
 will
not
be further developed or commercialized before their estimated useful life expires . As such, Management has determined that these assets have been impaired and a charge of approximately
$1.5
million was recorded.