8. INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

The carrying values of the Company’s finite-lived intangible assets are as follows:

	June 30, 2020							December 31, 2019
			Accumulated							Accumulated
	Cost		Amortization			Net		Cost		Amortization			Net
Patent	$	510,310	$	(510,310	)	$	-	$	510,310	$	(510,310	)	$	-
Product Licenses		3,350,000		(139,627	)		3,210,373		1,500,000		(48,876	)		1,451,124
Software and Other		64,464		(48,141	)		16,323		64,464		(44,394	)		20,070
Total	$	3,924,774	$	(698,078	)	$	3,226,696	$	2,074,774	$	(603,580	)	$	1,471,194

During the first quarter of 2020, the Company paid a $500,000 milestone payment to Rochal Industries, LLC (“Rochal”) upon FDA clearance of BIAKŌS™ Antimicrobial Wound Gel pursuant to the terms of the July 8, 2019 license agreement with Rochal. The milestone payment was recorded as an addition to intangible assets. During the second quarter of 2020, the Company signed a new product license agreement which required an initial payment of $1,350,000 to Rochal which included $600,000 in cash and $750,000 payable at the Company’s option in cash, Sanara common stock, or a combination of cash and Sanara common stock. The initial payment was recorded as an addition to intangible assets.

As of June 30, 2020, the weighted-average amortization period for all intangible assets is 12.8 years. Amortization expense related to intangible assets was $94,499 for the six months ended June 30,2020 and $18,965 for the six months ended June 30,2019. The estimated remaining amortization expense as of June 30, 2020 is as follows:

Remainder of 2020	$	129,030
2021		258,059
2022		255,645
2023		250,564
2024		250,564
Thereafter		2,082,834
Total	$	3,226,696

During the second quarter of 2020, the Company reviewed the carrying value of intangible assets due to the events and circumstances surrounding the COVID-19 pandemic. The Company does not believe the impact of COVID-19 has created an impairment loss on the Company’s intangible assets. Accordingly, there was no impairment loss recognized on the Company’s intangible assets during the six months ended June 30, 2020.