Annual report pursuant to Section 13 and 15(d)

Intangible Assets and In-Process R&D

v3.22.1
Intangible Assets and In-Process R&D
12 Months Ended
Dec. 31, 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 December 31, 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 December 31, 2021 and December 31, 2020 consists of projects acquired from the acquisitions of Jade, Bayon 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 December 31, 2021 and 2020 consists of the following:

    

Estimated Useful

    

    

    

Life (Years)

    

2021

    

2020

Trade Secrets

 

10

$

250,000

$

250,000

Less: Accumulated Amortization

 

  

 

(81,250)

 

(56,250)

Intangible Assets, Net

 

  

 

168,750

 

193,750

In-Process R&D

 

  

 

10,297,414

 

9,536,414

Impairment Loss

(1,770,314)

In-Process R&D, Net

$

8,527,100

$

9,536,414

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

 

  

$

8,695,850

$

9,730,164

Amortization expense on intangible assets was $25,000 for each of the years ended December 31, 2021 and 2020. Impairment loss was for KIO-201.