Intangible assets - Note 7

12 Months Ended

Dec. 31, 2013

Notes to Financial Statements

Intangible assets - Note 7

7. Intangible assets

Our intangible assets consist entirely of technology-based purchased patents. The patents are amortized using the straight-line method over their estimated period of benefit, ranging from one to 17 years. The gross value of our intangible assets was $1.7 million and $2.3 million as of December 31, 2013 and 2012, respectively. Amortization expense was $158,000 and $184,000 in 2013 and 2012, respectively. In 2013, we recorded an impairment amounting to $277,000 on 42 patents that were abandoned in prosecution. In 2012, we recorded an impairment amounting to $284,000 on 35 patents that were abandoned in prosecution.

The following table outlines the estimated future amortization expense related to intangible assets held at December 31, 2013:

Year ended December 31,		Amount
2014	$	132,000
2015		132,000
2016		131,000
2017		120,000
2018		119,000
Thereafter		511,000
Total	$	1,145,000