Annual report pursuant to Section 13 and 15(d)

Licenses, Net

v3.8.0.1
Licenses, Net
12 Months Ended
Dec. 31, 2017
Disclosure of licenses,Net [Abstract]  
Licenses, Net
Note 6 — Licenses, Net
 
 
 
December 31,
2017
 
December 31,
2016
 
 
 
 
 
 
 
 
 
Licenses
 
$
243,717
 
$
 
Less: Accumulated Amortization
 
 
-
 
 
 
 
 
 
 
 
 
 
 
Licenses, Net
 
$
243,717
 
$
 
 
The Company acquired two licenses in 2017. The first related to the renegotiation of an existing license at a cost of $114,967, which will result in lower royalty rates being paid by the Company over the next 10 years.  This license will take effect as of January 1, 2018.
 
The Company entered into Technology Acquisition Agreement where it acquired all the seller's right, title and interest in certain Transferred Intellectual Property (IP). Pursuant to the agreement, the Company paid approximately $75,702 as reimbursement of related patent application costs incurred by the seller to date, which are included in Patents and Trademarks. The Company also issued 25,000 shares, valued at $128,750, upon the closing and will issue (i) a further 25,000 shares after the Company has successfully developed a working demonstrator system utilizing the IP; and (ii) 50,000 shares once the Company completes the successful commercialization of products containing the IP for sale in the marketplace. The Company estimates that it will take up to 24 months and approximately $200,000 in new R&D spending to achieve the first development milestone of a functional demonstrator model. 
 
There was no amortization expense related to licenses in the years ended December 31, 2017, 2016 and 2015.