Annual report pursuant to Section 13 and 15(d)

Intangible Assets and In-Process R&D

v3.23.1
Intangible Assets and In-Process R&D
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and In-Process R&D Intangible Assets and In-Process R&DIntangible assets at December 31, 2022 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. Additionally, SentrX is eligible to receive milestone payments totaling up to $4.8 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 as of December 31, 2022 and 2021 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, 2022 and 2021 consists of the following:
Estimated Useful
Life (Years)		 2022 2021
Trade Secrets 10 $ 250,000  $ 250,000 
Less: Accumulated Amortization (106,250) (81,250)
Intangible Assets, Net 143,750  168,750 
In-Process R&D 10,599,414  10,599,414 
Total Intangible Assets and In-Process R&D, Net $ 10,743,164  $ 10,768,164 
Amortization expense on intangible assets was $25 thousand for each of the years ended December 31, 2022 and 2021.
Expected future amortization expense is as follows for the years ending December 31,:
Intangible Assets
2023 $ 25,000 
2024 25,000 
2025 25,000 
2026 25,000 
2027 25,000 
Thereafter 18,750 
Total $ 143,750