Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Liabilities Other Than Goodwill

v3.19.2
Intangible Assets and Liabilities Other Than Goodwill
 6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Liabilities Other Than Goodwill
Intangible Assets and Liabilities Other Than Goodwill

As of June 30, 2019 and December 31, 2018 the Company had the following amounts related to intangible assets and liabilities other than goodwill:
 
 
June 30, 2019
 
December 31, 2018
Intangible assets
 
Cost
 
Accumulated Amortization
 
Total
 
Cost
 
Accumulated Amortization
 
Total
Product certifications
 
$
726,159

 
$
(372,782
)
 
$
353,377

 
$
726,159

 
$
(345,658
)
 
$
380,501

Patents
 
930,509

 
(198,362
)
 
732,147

 
910,569

 
(188,239
)
 
722,330

Developed technology
 
240,000

 
(100,000
)
 
140,000

 
240,000

 
(92,000
)
 
148,000

Trademarks
 
25,552

 
—

 
25,552

 
22,752

 
—

 
22,752

In Process R&D
 
263,936

 
—

 
263,936

 
263,936

 
—

 
263,936

Favorable contract asset
 
274,858

 
(260,217
)
 
14,641

 
1,561,739

 
(232,099
)
 
1,329,640

TTcogen intangible assets
 
29,607

 
(4,626
)
 
24,981

 
—

 
—

 
—

 
 
$
2,490,621

 
$
(935,987
)
 
$
1,554,634

 
$
3,754,762

 
$
(860,772
)
 
$
2,893,990

 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible liability
 
 
 
 
 
 
 
 
 
 
 
 
Unfavorable contract liability
 
$
4,689,025

 
$
(1,934,528
)
 
$
2,754,497

 
$
7,912,275

 
$
(1,619,676
)
 
$
6,292,599


The aggregate amortization expense related to intangible assets and liabilities exclusive of contract related intangibles for the three and six months ended June 30, 2019 and 2018 was $23,649 and $47,748 and $26,473 and $51,376, respectively. The net credit to cost of sales related to the amortization of contract related intangible assets and liabilities for the three and six months ended June 30, 2019 and 2018 was $113,442 and $286,734 and $216,107 and $444,166, respectively.

Favorable/Unfavorable Contract Assets and Liabilities

The favorable contract asset and unfavorable contract liability in the foregoing table represent the estimated fair value of American DG Energy's customer contracts (both positive for favorable contracts and negative for unfavorable contracts) which were acquired by the Company in May 2017.

Amortization of intangibles including contract related amounts is calculated using the straight-line method over the remaining useful life or contract term. Aggregate future amortization over the next five years is estimated to be as follows:
Year 1
 
$
(179,760
)
Year 2
 
(190,417
)
Year 3
 
(214,440
)
Year 4
 
(176,316
)
Year 5
 
(116,609
)