Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and In-Process R&D

v3.21.2
Intangible Assets and In-Process R&D
9 Months Ended
Sep. 30, 2021
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 September 30, 2021 consist of the rights to trade-secrets and know-how related to the manufacturing of KIO-201. 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 KIO-201. The intangible assets were recorded at $0.250 million, representing the upfront payment paid to SentrX. Additionally, SentrX is eligible to receive milestone payments totaling up to $4.750 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 September 30, 2021 and December 31, 2020 consists of projects acquired from the acquisitions of Jade and Panoptes 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. The Company periodically evaluates these assets for impairment.

Intangible assets and in-process R&D at September 30, 2021 and December 31, 2020 consists of the following:

    

    

September 30, 

    

Estimated Useful

2021

Life (Years)

(unaudited)

December 31, 2020

Trade Secrets

 

10

$

250,000

$

250,000

Less: Accumulated Amortization

 

  

 

(75,000)

 

(56,250)

Intangible Assets, Net

 

  

 

175,000

 

193,750

In-Process R&D

 

  

 

9,536,414

 

9,536,414

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

 

  

$

9,711,414

$

9,730,164

Amortization expense on intangible assets was $6,250 for the three months ended September 30, 2021 and 2020 and $18,750 for the nine months ended September 30, 2021 and 2020.