Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
6 Months Ended
May 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

Note 3 – 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.

 

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.

Intangible assets were as follows as of May 31, 2018 and November 30, 2017:

 

    

Useful lives

   May 31, 2018      November 30, 2017  

Patents

   10-20 years    $ 234,570      $ 34,570  

Less: Accumulated amortization

        (17,732      (11,800

License agreement

   10 years      470,000        470,000  

Less: Intangible asset impairment

        (185,000      (185,000

Less: Accumulated amortization

        (107,694      (91,861

Customer relationships

   15 years      41,000        41,000  

Less: Intangible asset impairment

        (26,267      (26,267

Less: Accumulated amortization

        (4,750      (4,224
     

 

 

    

 

 

 

Net Intangible Assets

      $ 404,127      $ 226,418  
     

 

 

    

 

 

 

Amortization expense of intangibles was approximately $11,000 and $9,000 for the three months ended May 31, 2018 and May 31, 2017, respectively. Amortization expense of intangibles was approximately 22,000 and $17,000 for the six months ended May 31, 2018 and May 31, 2017, respectively.