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Intangible Assets
6 Months Ended
Jun. 30, 2011
Intangible Assets  
Intangible Assets

Note 3. Intangible assets

On November 17, 2010, we entered into a custom technology access and product license agreement with BioZone Laboratories, Inc. ("BioZone") for the co-development and strategic licensing of a portfolio of up to 20 aesthetics, advanced skin care formulations and other products for our MedPodium™ product line. The license agreement grants us a royalty-free license of BioZone technology to develop a portfolio of 20 products, customized to our product specifications. We will have exclusive rights to the products developed to our specifications. The license is for a term of 10 years with an automatic 1 year renewal and is initially being amortized over this period. We will periodically review the underlying technology which is being incorporated in our research and development efforts for any impairment. In exchange for the license we have agreed to pay BioZone a fee of $1.0 million. The net asset of $943,182 after giving effect to accumulated amortization, is included in the short term and long term other assets on our condensed consolidated balance sheets in the amounts of $90,909 and $852,273, respectively.

 

     June 30, 2011  
     Cost      Accumulated
Amortization
     Net Asset  

Technology and product license fee

   $ 1,000,000       $ 56,818       $ 943,182