Intangible Assets

6 Months Ended

12 Months Ended

Jun. 30, 2014

Dec. 31, 2013

Note 3. Intangible Assets

The following is a summary of intangible assets which consists of licenses and patents:

	Weighted Average Remaining Amortization Period (years)	Cost		Accumulated Amortization		Net Book Value
June 30, 2014
Licenses	6.2	$	462,234	$	292,765	$	169,469
Patents	2.3		1,893,185		1,540,175		353,010
Total	3.0	$	2,355,419	$	1,832,940	$	522,479
December 31, 2013
Licenses	6.7	$	462,234	$	279,258	$	182,976
Patents	2.6		1,893,185		1,443,649		449,536
Total	3.4	$	2,355,419	$	1,722,907	$	632,512

Amortization expense was $55,321 and $55,654 for the three months ended June 30, 2014 and 2013, respectively, and $110,033 and $110,696 for the six months ended June 30, 2014 and 2013, respectively.

Based on the balance of licenses and patents at June 30, 2014, the annual amortization expense for each of the succeeding five years is estimated to be as follows:

	Amortization Expense
July 1 thru December 31, 2014	$	112,800
2015	$	172,500
2016	$	61,800
2017	$	61,800
2018	$	20,800

License fees and royalty payments are expensed as incurred as the Company does not attribute any future benefits to such payments.

Note 3. Intangible Assets

The following is a summary of intangible assets which consists of licenses and patents:

	Weighted Average Remaining Amortization period (years)		Cost		Accumulated Amortization		Net Book Value
December 31, 2013
Licenses		6.72	$	462,234	$	279,258	$	182,976
Patents		2.6		1,893,185		1,443,649		449,536
Total		3.4	$	2,355,419	$	1,722,907	$	632,512
December 31, 2012
Licenses		7.72	$	462,234	$	252,019	$	210,215
Patents		3.3		1,893,185		1,247,672		645,513
Total		4.2	$	2,355,419	$	1,499,691	$	855,728

Amortization expense was $223,216 and $223,838 in 2013 and 2012, respectively.

Based on the balance of licenses and patents at December 31, 2013, the annual amortization expense for each of the succeeding five years is estimated to be as follows:

Year	Amortization Expense
2014	$	222,800
2015	$	172,500
2016	$	61,800
2017	$	61,800
2018	$	20,800

License fees and royalty payments are expensed annually as incurred as the Company does not attribute any future benefits other than within that period.