INTANGIBLE ASSETS AND GOODWILL

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 3 - INTANGIBLE ASSETS AND GOODWILL

Goodwill from 2019 Reverse Merger with Oncotelic and PointR

The Company completed the merger with Oncotelic Inc. (“Merger”) in April 2019. The Company completed the merger with PointR Data Inc (“PointR Merger”) in November 2019. For more details, refer to our 2020 Annual Report on Form 10-K for the year ended December 31, 2020 filed by the Company on April 15, 2021.

The Oncotelic merger 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, as of June 30, 2022, since 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.

Upon the non-financial sale of our asset as contribution to our equity method investment we derecognized the balance of the carrying value of our goodwill of approximately $4.9 million from the Oncotelic Merger in accordance with our policy and authoritative accounting guidance.

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, 2022 and December 31, 2021, of the intangible assets acquired, their useful life, and annual amortization:

	June 30, 2022			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		(201,180	)
Less: Derecognition of carrying value upon transfer of non-financial asset		809,000
Total	$	-

	December 31, 2021			Remaining Estimated Useful Life (Years)
Intangible asset – Intellectual property	$	819,191			17.00
Intangible asset – Capitalization of license cost		190,989			17.00
		1,010,180
Less Accumulated Amortization		(188,339	)
Total	$	821,841

Amortization of identifiable intangible assets for the three months ended June 30, 2022 and 2021 was $0 and $12,841, respectively. Amortization of identifiable intangible assets for the six months ended June 30, 2022 and 2021 was $12,841 and $25,683, respectively. Upon the non-financial sale of our asset as contribution to our equity method investment of approximately $809,000, we derecognized the balance of the carrying value of our intangibles in accordance with our policy and authoritative accounting guidance.

There will be no future yearly amortization expense related to our intangibles.

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

The IPR&D assets were acquired in the PointR Merger 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, 2022 and December 31, 2021 was $1,101,760. The following table summarizes the balances as of June 30, 2022 and December 31, 2021 of the IPR&D assets. The Company evaluates, on an annual basis, for any impairment and records an impairment if identified. The Company identified no impairment to IPR&D assets during its evaluation.

	June 30, 2022
Intangible asset – Intellectual property	$	1,377,200
		1,377,200
Less Accumulated amortization		(275,440	)
Total	$	1,101,760

	December 31, 2021
Intangible asset – Intellectual property	$	1,377,200
		1,377,200
Less Accumulated amortization		(275,440	)
Total	$	1,101,760