Intangible Assets

12 Months Ended

Dec. 31, 2016

Intangible Assets [Abstract]

Intangible Assets

Note 7 – Intangible Assets:

The Company’s intangible assets at December 31, 2016 and 2015 consisted of the following:

2016

Intangible Asset	Cost		Accumulated Amortization		Net
Patents	$	622,733	$	335,300	$	287,433
Trade names and trademarks		1,131,125		549,561		581,564
Royalty rights		160,000		61,309		98,691
Total intangible assets	$	1,913,858	$	946,170	$	967,688

2015

Intangible Asset	Cost		Accumulated Amortization		Net
Patents	$	622,733	$	282,964	$	339,769
Trade names and trademarks		1,131,125		549,561		581,564
Royalty rights		160,000		43,365		116,635
Total intangible assets	$	1,913,858	$	875,890	$	1,037,968

At December 31, 2016 and 2015, the tradenames and trademarks are considered indefinite-lived (the Star brite® trade name and trademark initially was deemed to have an estimated useful life of 40 years until, pursuant to Statement of Financial Accounting Standards No. 142 (currently codified in ASC Topic 350, “Intangibles-Goodwill and Other”), the Company determined that, effective January 1, 2002, the assets had indefinite lives).  The patents (the most significant of which (the “ClO₂ Patents”) relate to a device for producing chlorine dioxide (ClO₂) that is incorporated into the Company’s disinfectant, sanitizer and deodorizing products) had a carrying value, net of amortization, of  $287,433 at December 31, 2016 (of which $282,963 is attributable to the ClO₂ Patents). The ClO₂ Patents expire in 2022 and the other patents expire in 2021.  The royalty rights (which the Company purchased from an unaffiliated entity that previously owned the ClO₂ Patents and retained the royalty rights after selling the patents) expire in December 2021 and are amortized on a straight line basis over their remaining useful lives.

Amortization expense related to intangible assets was $70,280 ($52,336 attributable to the patents and $17,944 attributable to the royalty rights) for the year ended December 31, 2016 and approximately $69,392 ($51,448 attributable to the patents and $17,944 attributable to the royalty rights) for the year ended December 31, 2015.