INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 3 - INTANGIBLE ASSETS AND GOODWILL

The Company completed a merger with Oncotelic, which gave rise to Goodwill of $4,879,999. Further, we 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 assets are currently being developed for various cancer and COVID-19 therapies, and the Company is contemplating other collaboration efforts for both products and the other products that the Company owns, 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 Inc. 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 Inc. issued 204,798 shares of its Common Stock for a value of $819,191. The Assignment Agreement also provides that Oncotelic Inc. 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 June 30, 2021 and December 31, 2020, of the intangible assets acquired, their useful life, and annual amortization:

	June 30, 2021			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual Property	$	819,191			16.50
Intangible asset – Capitalization of license cost		190,989			16.50
		1,010,180
Less Accumulated Amortization		(162,655	)
Total	$	847,525

	December 31, 2020			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual Property	$	819,191			18.00
Intangible asset – Capitalization of license cost		190,989			18.00
		1,010,180
Less Accumulated Amortization		(136,974	)
Total	$	873,206

Amortization of identifiable intangible assets for the three months ended June 30, 2021 and 2020 was $12,841 and $12,841, respectively. Amortization of identifiable intangible assets for the six months ended June 30, 2021 and 2020 was $25,683 and $25,683, respectively.

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

For the six months and years ended December 31,
Six months of 2021	$	25,683
2022		51,365
2023		51,365
2024		51,365
2025		51,365
Thereafter		616,382
	$	847,525

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

The IPR&D assets were acquired in the PointR acquisition during the year ended December 31, 2019. Since January 2021, the Company has determined that the IPR&D should be reported as an indefinitely lived asset and therefore will evaluate, on an annual basis, for any impairment on the IPR&D and will record an impairment if identified. The balance of IPR&D as of June 30, 2021 and December 31, 2020 was $1,101,760.