Neuralstem is a biopharmaceutical company that is utilizing its proprietary human neural stem cell technology to create a comprehensive platform for the treatment of central nervous system diseases. The Company will commercialize this technology as a tool for use in the next generation of small-molecule drug discovery and to create cell therapy biotherapeutics to treat central nervous system diseases. The Company was founded in 1997 and currently has laboratory and office space in Germantown, Maryland and laboratory facilities in San Diego, California an d in the People’s Republic of China. Inherent in the Company’s business are various risks and uncertainties, including its limited operating history, the fact that Neuralstem’s technologies are new and may not allow the Company or its customers to develop commercial products, regulatory requirements associated with drug development efforts and the intense competition in the genomics industry. The Company’s success depends, in part, upon successfully raising additional capital, prospective product developm ent efforts, the acceptance of the Company’s proposed products by the marketplace, and approval of the Company’s proposed products by various U.S. and foreign governmental agencie s. Note 6 Property and Equipment The major classes of property and equipment consist of the following at December 31: 2014 2013 Furniture and fixtures $ 22,603 $ 21,036 Computers and office equipment 100,105 58,741 Lab equipment 661,789 497,328 784,497 577,105 Less accumulated depreciation (483,232 ) (346,134 ) Property and equipment, net $ 301,265 $ 230,971 The above includes approximately $77,000 of equipment located at our research facility in China. Property and equipment are recorded at cost and are depreciated using the straight-line method over the estimated useful lives of the respective assets. Depreciation expense for the years ended December 31, 2014, 2013 and 2012 was approximately $137,000, $126,000 and $101,000, respectively. Note 7 Intangible Assets The Company holds patents related to its stem cell and small molecule technologies. Patent costs are capitalized and are being amortized over the life of the patents. The weighted average remaining unamortized life of issued patents was approximately 9.8, years at December 31, 2014. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. During the years ended December 31, 2014, 2013 and 2012, no significant impairment losses were recognized. The Company’s intangible assets and accumulated amortization consisted of t he following at December 31, 2014 and 2013: 2014 2013 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Patent asset $ 1,822,037 $ (588,865 ) $ 1,233,172 $ 1,539,349 $ (401,648 ) $ 1,137,701 Amortization expense for the years ended December 31, 2014, 2013 and 2012 was approximately $211,000, $119,000 and $110,000, respectively. The expected average future annual amortization expense over the next five years is approximately $139,000 based on current balances of our intangible assets.
- Spring '14