Quarterly report pursuant to Section 13 or 15(d)

Intellectual Property

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Intellectual Property
9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intellectual Property

4.         Intellectual Property

 

On July 3, 2014, five of the founding stockholders contributed the rights to certain intellectual property to the Company in exchange for the issuance of 4,101,822 shares with a fair value of $1,059,000. This contribution was recorded as an intangible asset with an offset to additional paid-in capital for $637,000 and deferred taxes for $422,000.

 

Intellectual property, net, is comprised of the following as of the dates indicated (in thousands):

 

    September 30,
2016
    December 31,
2015
 
Intellectual property   $ 1,384     $ 1,219  
Accumulated amortization     (247 )     (154 )
Intellectual property, net   $ 1,137     $ 1,065  

 

Amortization expense was $34,000 and $27,000 for the three months ended September 30, 2016 and 2015, respectively and $93,000 and $81,000 for the nine months ended September 30, 2016 and 2015, respectively.