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INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

NOTE 5 – INTANGIBLE ASSETS

 

Krillase

 

As part of the asset acquisition of ACB Holding AB, Reg. No. 559119-5762, completed on September 12, 2018, Marizyme acquired all rights, titles, and interest in the Krillase technology, a group of intangible assets worth $28,600,000. Krillase is a naturally occurring enzyme that acts to break protein bonds and has applications in wound debridement, wound healing, dental care and thrombosis. The useful lives of the intangible assets are based on the life of the patent and related technology. The patents and related technology for Krillase have not been amortized since the acquisition, as they have not yet been put into operations.

 

At December 31, 2022, management determined that the carrying value of Krillase exceeded its recoverable amount. Impairment of $24,350,000 was recognized on Krillase intangible assets and recorded in the impairment of intangible assets in the consolidated statements of operations for the year ended December 31, 2022. However, for the three and nine months ended September 30, 2023 and 2022, no impairment has been recognized on Krillase intangible assets.

 

 

DuraGraft

 

As part of Somahlution acquisition in 2020, Marizyme purchased $18,170,000 of intangible assets related to the DuraGraft® technology. No impairment has been recognized on DuraGraft intangible assets for the three and nine months ended September 30, 2023 and 2022.

 

My Health Logic

 

As part of My Health Logic acquisition completed on December 22, 2021, Marizyme purchased MHL’s lab-on-chip technology platform and its patient-centric, digital point-of-care diagnostic device, MATLOC, fair valued at an aggregate amount of $6,600,000. No impairment has been recognized on My Health Logic intangible assets for the three and nine months ended September 30, 2023 and 2022.

 

   September 30, 2023 
   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount 
Krillase intangible assets  $4,250,000   $-   $4,250,000 
Patents in process   122,745    -    122,745 
DuraGraft patent   5,256,000    (1,280,307)   3,975,693 
DuraGraft - Distributor relationship   308,000    (97,533)   210,467 
DuraGraft IPR&D - Cyto Protectant Life Sciences   12,606,000    -    12,606,000 
My Health Logic - Trade name   450,000    (57,054)   392,946 
My Health Logic - Biotechnology   4,600,000    (480,294)   4,119,706 
My Health Logic - Software   1,550,000    (183,416)   1,366,584 
Total intangibles  $29,142,745   $(2,098,604)  $27,044,141 

 

   December 31, 2022 
   Gross Carrying Amount   Accumulated Amortization   Impairment   Net Carrying Amount 
Krillase intangible assets  $28,600,000   $-   $(24,350,000)  $4,250,000 
Patents in process   122,745    -    -    122,745 
DuraGraft patent   5,256,000    (977,076)   -    4,278,924 
DuraGraft - Distributor relationship   308,000    (74,433)   -    233,567 
DuraGraft IPR&D - Cyto Protectant Life Sciences   12,606,000    -    -    12,606,000 
My Health Logic - Trade name   450,000    (32,947)   -    417,053 
My Health Logic - Biotechnology   4,600,000    (277,353)   -    4,322,647 
My Health Logic - Software   1,550,000    (105,916)   -    1,444,084 
Total intangibles  $53,492,745   $(1,467,725)  $(24,350,000)  $27,675,020 

 

 

Goodwill  DuraGraft   My Health Logic   Total 
Balance, September 30, 2023 and December 31, 2022  $5,416,000   $1,774,656   $7,190,656 

 

The following changes to the Company’s intangible assets had taken place in the periods indicated:

 

Balance, December 31, 2021  $52,866,192 
Impairment   (24,350,000)
Amortization expense   (841,172)
Balance, December 31, 2022   27,675,020 
Amortization expense   (630,879)
Balance, September 30, 2023  $27,044,141 

 

 

Future amortizations for DuraGraft and My Health Logic intangible assets for the remaining three months of the fiscal 2023 will be $210,293, for the next five years from 2024 through 2028 - $841,172 for each year, and for 2029 and thereafter - $5,649,241. Amortization related to in-process research and development will be determined upon the Company achieving commercialization.