Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and In-Process R&D

v3.19.2
Intangible Assets and In-Process R&D
6 Months Ended
Jun. 30, 2019
Intangible Assets and In-Process R&D  
Intangible Assets and In-Process R&D

6.    Intangible Assets and In-Process R&D

Intangible assets at June 30, 2019 consist of the rights to trade-secrets and know-how related to the manufacturing of the EyeGate Ocular Bandage Gel (“OBG”). During the third quarter of 2018, the Company entered into an intellectual property license agreement with SentrX Animal Care, Inc. (“SentrX”) with respect to certain rights relating to the manufacturing of the EyeGate OBG product. The intangible assets were recorded at $250,000, representing the upfront payment paid to SentrX. Additionally, SentrX is eligible to receive milestone payments totaling up to $4.75 million, upon and subject to the achievement of certain specified development and commercial milestones. These future milestone payments to SentrX will increase the carrying value of the intangible assets. The Company’s intangible assets are amortized on a straight-line basis over the estimated useful lives. Additionally, in-process R&D at June 30, 2019 and December 31, 2018 consists of projects acquired from the acquisition of Jade that have not reached technological feasibility and which have no alternative future use. Once the R&D process is complete, the Company will amortize the R&D asset over its remaining useful life , or if the Company determines not to continue with R&D, write such assets off. The Company periodically evaluates these assets for impairment.

Intangible assets and in-process R&D at June 30, 2019 and December 31, 2018 consists of the following:

 

 

 

 

 

 

 

 

 

 

 

    

Estimated Useful

    

June 30, 2019

    

December 31, 

 

 

Life (Years)

 

(unaudited)

 

2018

Trade Secrets

 

10

 

$

250,000

 

$

250,000

Less: Accumulated Amortization

 

  

 

 

(18,750)

 

 

(6,250)

Intangible Assets, Net

 

  

 

 

231,250

 

 

243,750

In-Process R&D

 

  

 

 

3,912,314

 

 

3,912,314

Total Intangible Assets and In-Process R&D, Net

 

  

 

$

4,143,564

 

$

4,156,064

 

 

Amortization expense on intangible assets was $6,250 and $0 for the three months ended June 30, 2019 and 2018, respectively, and $12,500 and $0 for the six months ended June 30, 2019 and 2018, respectively.