Prepaid Expenses And Other Current Assets & Patents And Intangible Assets
|12 Months Ended|
Dec. 31, 2018
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Prepaid Expenses And Other Current Assets & Patents And Intangible Assets||
PREPAID EXPENSES AND OTHER CURRENT ASSETS & PATENTS AND INTANGIBLE ASSETS
Prepaid Expenses and Other Current Assets
The components of prepaid expenses and other current assets are as presented below:
Patents and Intangible Assets
The Company owns or possesses licenses to use its patents. The costs of maintaining the patents are expensed as incurred.
The Company and Finjan Blue entered into a Patent Assignment and Support Agreement (the “Patent Assignment Agreement”) with IBM effective as of August 24, 2017 (see "Note 7 - Commitments and Contingencies"). Pursuant to the Patent Assignment Agreement, Finjan Blue acquired select IBM patents in the security sector. In accordance with ASC 350-30-35-2 through 35-4, Intangibles-Goodwill and Other, the Company determined that the useful life of the patents acquired under the Patent Assignment and Support Agreement should be amortized over the four-year term of the agreement.
On May 15, 2018, Finjan Blue, entered into a second agreement with IBM (the “May 2018 Patent Assignment Agreement”). Pursuant to the May 2018 Patent Assignment Agreement, Finjan Blue acquired 56 select issued and pending IBM patents in the security sector. The terms of the May 2018 Patent Assignment Agreement are confidential. In accordance with ASC 350-30-35-2 through 35-4, Intangibles-Goodwill and Other, the Company determined that the useful life of the patents acquired under the May 2018 Patent Assignment Agreement should be amortized over five years as the covenants between the parties are effective for that period.
Management did not identify any triggering events which would have necessitated an impairment change.
The components of these intangible assets are as follows:
Amortization expense for the years ended December 31, 2018 and 2017 was approximately $1.8 million and $0.8 million, respectively, and nil for the year ended December 31, 2016.
Future amortization costs of $5.5 million will be recognized ratably over the next 4.5 years.
Prepaid Expenses, Other Current Assets, And Intangible Assets [Text Block]
No definition available.