Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
6 Months Ended
May 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

Note 4 – Intangible Assets

The Company incurs certain legal and related costs in connection with patent and trademark applications. If a future economic benefit is anticipated from the resulting patent or trademark or an alternate future use is available to the Company, such costs are capitalized and amortized over the expected life of the patent or trademark. The Company’s assessment of future economic benefit involves considerable management judgment. A different conclusion could result in the reduction of the carrying value of these assets.

During the quarter ended August 31, 2016, the Company determined that there were sufficient indicators to trigger an interim goodwill impairment analysis (Note 2). The Company reviews intangible assets with finite lives for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable. Determining whether an impairment loss occurred requires a comparison of the carrying amount to the sum of the future forecasted undiscounted cash flows expected to be generated by the asset per ASC 360, Property, Plant and Equipment. As a result of the Company’s two-step impairment analysis, an impairment of intangible assets within the PrepaCyte® CB reporting segment, license agreement and customer relationships, existed and an intangible asset impairment charge of $211,267 during the third quarter of fiscal 2016.

Intangible assets were as follows as of May 31, 2017 and November 30, 2016:

 

     Useful lives      May 31, 2017      November 30, 2016  

Patents

     10-20 years      $ 34,570      $ 34,570  

Less: Accumulated amortization

        (10,869      (9,937

License agreement

     10 years        470,000        470,000  

Less: Intangible asset impairment

        (185,000      (185,000

Less: Accumulated amortization

        (76,028      (60,194

Customer relationships

     15 years        41,000        41,000  

Less: Intangible asset impairment

        (26,267      (26,267

Less: Accumulated amortization

        (3,697      (3,172
     

 

 

    

 

 

 

Net Intangible Assets

      $ 243,709      $ 261,000  
     

 

 

    

 

 

 

Amortization expense of intangibles was approximately $9,000 and $13,000 for the three months ended May 31, 2017 and May 31, 2016, respectively. Amortization expense of intangibles was approximately 17,000 and $25,000 for the six months ended May 31, 2017 and May 31, 2016, respectively.