Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Liabilities Other Than Goodwill

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Intangible Assets and Liabilities Other Than Goodwill
3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Liabilities Other Than Goodwill Intangible Assets and Liabilities Other Than Goodwill
As of March 31, 2021 and December 31, 2020 the Company had the following amounts related to intangible assets and liabilities other than goodwill:
March 31, 2021 December 31, 2020
Intangible assets Cost Accumulated Amortization Total Cost Accumulated Amortization Total
Product certifications $ 726,160  $ (491,950) $ 234,210  $ 726,159  $ (478,357) $ 247,802 
Patents 853,296  (244,810) 608,486  855,014  (220,764) 634,250 
Developed technology 240,000  (128,000) 112,000  240,000  (124,000) 116,000 
Trademarks 26,896  —  26,896  26,896  —  26,896 
In Process R&D 263,936  —  263,936  263,936  —  263,936 
Favorable contract asset 384,465  (324,290) 60,175  384,465  (313,030) 71,435 
$ 2,494,753  $ (1,189,050) $ 1,305,703  $ 2,496,470  $ (1,136,151) $ 1,360,319 
Intangible liability
Unfavorable contract liability $ 2,534,818  $ (1,007,153) $ 1,527,665  $ 2,534,818  $ (917,767) $ 1,617,051 
The aggregate amortization expense related to intangible assets and liabilities exclusive of contract related intangibles for the three months ended March 31, 2021 and 2020 was $42,890 and $22,816, respectively. The net credit to cost of sales related to the amortization of contract related intangible assets and liabilities for the three months ended March 31, 2021 and 2020 was $79,053 and $107,998, respectively. During the three months ended March 31, 2021 and 2020, we abandoned certain patent applications amounting to $7,400 and $179,944, respectively, and recorded an abandonment charge in general and administrative expenses in each respective period

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 us 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 $ (120,704)
Year 2 (106,386)
Year 3 (53,634)
Year 4 (21,374)
Year 5 and thereafter 53,239 
Total $ (248,859)