Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

NOTE 3 – GOODWILL AND INTANGIBLE ASSETS

Mateon completed the Merger with Oncotelic, which gave rise to Goodwill of $4,879,999. Further, Mateon added goodwill of $16,182,456 upon the completion of the Merger with PointR. In general, the goodwill is tested on an annual impairment date 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, the Company does not believe the there are any factors or indications that the goodwill is 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.

Intangible Asset Summary

The following table summarizes the balances as of September 30, 2020 and December 31, 2019, of the intangible assets acquired, their useful life, and annual amortization:

	September 30, 2020			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual Property	$	819,191			18.26
Intangible asset – Capitalization of license cost		190,989			18.26
		1,010,180
Less Accumulated Amortization		(124,133	)
Total	$	886,047

	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

Amortization of identifiable intangible assets for the three months ended September 30, 2020 and 2019 was $12,841 and $12,841, respectively. Amortization of identifiable intangible assets for the nine months ended September 30, 2020 and 2019 was $38,524 and $38,524, respectively.

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

For the years ended December 31,
Remainder of 2020	$	12,841
2021		51,365
2022		51,365
2023		51,365
2024		51,365
Thereafter		667,746
	$	886,047

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

The following table summarizes the balances as of September 30, 2020 of the IPR&D assets acquired during the three months ended December 31, 2019. The Company will evaluate, on an annual basis, for any impairment and record an impairment if identified. No similar balances were present in 2019:

	September 30, 2020			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual Property	$	1,377,200			4.25
		1,377,200
Less Accumulated Amortization		(206,580	)
Total	$	1,170,620

Amortization of identifiable intangible assets for the three months ended September 30, 2020 and 2019 was $68,860 and $0, respectively. Amortization of identifiable intangible assets for the nine months ended September 30, 2020 and 2019 was $206,580 and $0, respectively.

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

For the years ended December 31,
Remainder of 2020	$	68,860
2021		275,440
2022		275,440
2023		275,440
2024		275,440
	$	1,170,620