Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS

v3.8.0.1
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2017
Intangible Assets, Net (Including Goodwill) [Abstract]  
INTANGIBLE ASSETS
INTANGIBLE ASSETS

Definite-lived intangible assets consist of distribution agreements, patents, trademarks, copyrights, and domain names. The costs of the distribution agreements are amortized over the remaining life of the agreements. The costs of the patents are amortized over 20 years once the patent is approved. Indefinite-lived intangible assets consist of goodwill. In accordance with ASC 350, goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. We test goodwill for impairment as of each balance sheet date. Intangible assets consisted of the following:

Definite-lived intangible assets
 
 
As of
 
 
December 31, 2017
 
December 31, 2016
Distribution agreements
 
$
41,984

 
$
39,264

Less: Accumulated amortization
 
$
(41,984
)
 
(39,264
)
Distribution agreements, net
 

 

 
 
 
 
 
Patents, trademarks, copyrights, and domain names
 
$
584,980

 
547,071

Less: Accumulated amortization
 
$
(90,188
)
 
(56,989
)
Patents, trademarks, copyrights, and domain names, net
 
494,792

 
490,082

 
 
 
 
 
Total definite-lived intangible assets, net
 
$
494,792

 
$
490,082



Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table:
For the Years Ending December 31,
Amount
2018
$
28,103

2019
28,103

2020
28,103

2021
28,103

2022
28,103


 
Indefinite-lived intangible assets
 
 
As of
 
 
December 31, 2017
 
December 31, 2016
Goodwill
 
$
997,701

 
$
997,701


 
The Company determined on a qualitative basis that it was not more likely than not that the fair value of the goodwill arising from the acquisition of VIM Injection Management in November 2014 was less than its carrying value. As such, the Company did not have any impairment for the year ended December 31, 2017.