Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and In-Process R&D

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Intangible Assets and In-Process R&D
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and In-Process R&D Intangible Assets and In-Process R&D
Intangible assets at September 30, 2023 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 $0.3 million, representing the upfront payment paid to SentrX. The Company’s intangible assets are amortized on a straight-line basis over the estimated useful lives. Additionally, in-process R&D as of September 30, 2023 and 2022 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 consists of the following:
Estimated Useful
Life (Years)		 September 30, 2023 December 31, 2022
Trade Secrets 10 $ 250,000  $ 250,000 
Less: Accumulated Amortization (125,000) (106,250)
Intangible Assets, Net 125,000  143,750 
In-Process R&D 8,695,100  10,599,414 
Total Intangible Assets and In-Process R&D, Net $ 8,820,100  $ 10,743,164 
As of September 30, 2023, the estimated fair value of the Jade assets was less than their carrying value. Accordingly, the Company recognized an impairment of $1.9 million. See Note 1 for additional discussion of IPR&D and impairment loss.