Note 6.  Other long-term assets:

Other long-term assets as of June 30, 2018 consisted of the following (unaudited):

 

Cost:		Beginning Balance December 31, 2017				Additions				Ending Balance June 30, 2018
Patents		$	1,059,832			$	31,068			$	1,090,900
Goodwill			1,186,496				-				1,186,496
Convertible note investment			200,000				-				200,000
Total			2,446,328				31,068				2,477,396
Accumulated amortization:
Patents			(550,183	)			(29,219	)			(579,402	)
Total			(550,183	)			(29,219	)			(579,402	)
Net other long-term assets		$	1,896,145			$	1,849			$	1,897,994

 

The Company’s intangible assets with finite lives consist of its patents. The patents were issued in relation to its animal health business which has been out-licensed. For all periods presented, all of the Company’s identifiable intangible assets were subject to amortization. The carrying amounts related to acquired intangible assets as of June 30, 2018 were as follows (unaudited):

 

		June 30, 2018
Patents at January 1, 2018, net		$	509,649
Additions			31,068
Less: amortization expense			29,219
Patents at June 30, 2018, net		$	511,498

 

The following table represents the total estimated amortization of intangible assets for the five succeeding years:

 

For the year ended December 31,		Estimated  amortization expense
2018		$	28,781
2019		$	58,000
2020		$	58,000
2021		$	58,000
2022		$	46,479

 

The Company capitalizes legal costs and filing fees associated with obtaining patents on its new discoveries. Once the patents have been issued, the Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method. Amortization expense totaled $15,000 and $17,000 for the three months ended June 30, 2018 and 2017, respectively. Amortization expense totaled $29,000 and $35,000 for the six months ended June 30, 2018 and 2017, respectively. The Company tests intangible assets with finite lives upon significant changes in the Company’s business environment. The testing resulted in no patent impairment charges during the six months ended June 30, 2018 and 2017.