Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

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Intangible Assets
6 Months Ended
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
5.
Intangible Assets
 
The Company has two categories of intangible assets – intellectual property and patents. Intellectual property consists of technology for producing targeted proteins in plants for the development and manufacture of novel vaccines and therapeutics for humans and certain veterinary applications (the “Technology”) acquired in December 2003 from Fraunhofer USA Inc., acting through its Center for Molecular Biotechnology (“Fraunhofer”), pursuant to a Technology Transfer Agreement, as amended (the “TTA”). Patents consist of payments for services and fees related to the further development and protection of the Company’s patent portfolio.
 
The Company accounts for intangible assets at their historical cost and records amortization utilizing the straight-line method based upon their estimated useful lives. Patents are amortized over a period of ten years and other intellectual property is amortized over a period from 18 to 23 years. The Company reviews the carrying value of its intangible assets for impairment whenever events or changes in business circumstances indicate the carrying amount of such assets may not be fully recoverable. Evaluating for impairment requires judgment, and recoverability is assessed by comparing the projected undiscounted net cash flows of the assets over the remaining useful life to the carrying amount. Impairments, if any, are based on the excess of the carrying amount over the fair value of the assets. There were no impairment charges during the six months ended December 31, 2014 and 2013.
 
The following table summarizes by category the gross carrying value and accumulated amortization of intangible assets (in thousands):
 
 
 
December 31,
 
 
 
 
 
2014
 
June 30,
 
 
 
(Unaudited)
 
2014
 
Intellectual property – gross carrying value
 
$
3,100
 
$
3,100
 
Patents – gross carrying value
 
 
2,120
 
 
2,068
 
 
 
 
5,220
 
 
5,168
 
Intellectual property – accumulated amortization
 
 
(1,699)
 
 
(1,621)
 
Patents – accumulated amortization
 
 
(1,058)
 
 
(972)
 
 
 
 
(2,757)
 
 
(2,593)
 
Net intangible assets
 
$
2,463
 
$
2,575
 
 
Amortization expense was $90,000 and $88,000 for the three months ended December 31, 2014 and 2013, respectively, and for the six months ended December 31, 2014 and 2013, amortization expense was $178,000 and $175,000, respectively. In addition, for both the three and six months ended December 31, 2014, the Company incurred losses on the abandonment of patents of approximately $30,000. There were no impairment charges for both the three and six months ended December 31, 2013.