Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

NOTE 4 - INTANGIBLE ASSETS AND GOODWILL

Mateon completed a Merger with Oncotelic (Note 3), which gave rise to Goodwill of $4,751,055. Further, we added goodwill of $16,311,400 upon the completion of the Merger with PointR (Note 3). In general, the goodwill is tested on an annual impairment date chosen of December 31. However, since both mergers were completed in 2019 and both assets are currently being developed for various cancer and COVID-19 therapies, we do not believe the goodwill of the companies acquired has been impaired.

Assignment and Assumption Agreement with Autotelic, Inc.

In April 2018, Oncotelic entered into an Assignment and Assumption Agreement (the “Assignment Agreement”) with Autotelic Inc., an affiliate company, and Autotelic LLC, an affiliate company, pursuant to which Oncotelic acquired the rights to all intellectual property (“IP”) related to a patented product. As consideration for the Assignment Agreement, Oncotelic issued 204,798 shares of its Common Stock for a value of $819,191. The Assignment Agreement also provides that Oncotelic shall be responsible for all costs related to the IP, including development and maintenance, going forward. All previous pass through charges related to this asset from Autotelic Inc. to Autotelic, LLC and then to Oncotelic will be null and void. As a result, Oncotelic wrote-off approximately $458,000 in previously billed charges related to the Oncotelic IP for the year ended December 31, 2018 which was recorded in general and administrative expense. Dr. Trieu, a related party, is a control person in Autotelic LLC and Autotelic Inc.

Intangible Asset Summary

The following table summarizes the balances as of December 31, 2019 and December 31, 2018, of the intangible assets acquired, their useful life, and annual amortization:

	December 31, 2019			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual Property	$	819,191			18.68
Intangible asset – Capitalization of license cost		190,989			18.68
		1,010,180
Less Accumulated Amortization		(85,608	)
Total	$	924,572

	December 31, 2018			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual Property	$	819,191			19.27
Intangible asset – Capitalization of license cost		190,989			19.27
		1,010,180
Less Accumulated Amortization		(34,189	)
Total	$	975,991

Amortization of identifiable intangible assets for the years ended December 31, 2019 and 2018 was $51,365 and $34,189, respectively.

The future yearly amortization expense over the next five years and thereafter are as follows:

For the year ended December 31,
2020	$	51,365
2021		51,365
2022		51,365
2023		51,365
2024		51,365
Thereafter		667,747
	$	924,572

In-Process Research & Development (IPR&D) Summary

The following table summarizes the balances as of December 31, 2019 of the IPR&D assets acquired. The Company will evaluate, on an annual basis, for any impairment and record an impairment if identified. No similar balances were present in 2018:

	December 31, 2019
Intangible asset – In-process research & development	$	1,377,200
Total	$	1,377,200