Note 3. Intangible and Fixed Assets | Note 3. Intangible and Fixed Assets Intangible Assets The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent. On July 7, 2009, U.S. Patent # 7,558,730, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization. AVRS filed a Complaint in the United States District Court Northern District for Arizona (Case No. 2-18-cv-2083) on July 3, 2018, and alleges that Apple products infringe U.S. Patent No. 7,558,730 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (the “‘730 Patent”). On May 24, 2011, U.S. Patent #7,949,534, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization. On March 6, 2012, U.S. Patent #8,131,557, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization. On July 30, 2013, U.S. Patent #8,498,871, entitled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization. On September 22, 2015, U.S. Patent #9,142,217, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization. On April 3, 2018, U.S. Patent #9,934,786, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001 or November 27, 2021. The deferred costs were capitalized during the quarter ended June 30, 2018 and the Company began amortization. Amortization at December 31, 2018 is as follows: SCHEDULE OF INTANGIBLE ASSETS Ended December 31, 2018 U.S. Patent # Carrying Value Amortization Balance 7,558,730 $ 58,277 44,574 13,703 7,949,534 3,365 2,426 939 8,131,557 5,092 3,568 1,524 8,498,871 21,114 13,715 7,399 9,142,217 35,068 18,882 16,186 9,934,786 4,575 936 3,639 $ 127,491 $ 84,101 $ 43,390 Amortization at September 30, 2019 is as follows: Ended September 30, 2019 U.S. Patent # Carrying Value Amortization Balance 7,558,730 $ 58,277 48,093 10,184 7,949,534 3,365 2,660 705 8,131,557 5,092 3,961 1,131 8,498,871 21,114 15,614 5,500 9,142,217 35,068 22,929 12,139 9,934,786 4,575 1,872 2,703 $ 127,491 $ 95,129 $ 32,362 Amortization expense totaled $11,028 and $10,716 for the nine months ended September 30, 2019 and 2018. Estimated aggregate amortization expense for each of the next three years is as follows: SCHEDULE OF FUTURE AMORTIZATION Year ending September 30, 2019 3,675 2020 14,702 2021 13,985 $ 32,362 Fixed Assets Fixed assets were fully depreciated in the period ending December 31, 2018. PROPERTY PLANT AND EQUIPMENT December 31, 2018 Computer equipment $ 6,627 Computer software 3,640 10,267 Less accumulated depreciation (10,267) Property and Equipment, Net $ 0 September 30, 2019 September 30, 2018 Computer equipment $ 6,627 $ 6,627 Computer software 3,640 3,640 10,267 10,267 Less accumulated depreciation (10,267) (10,267) Property and Equipment, Net $ 0 $ 0 |