Annual report pursuant to Section 13 and 15(d)

PATENT COSTS

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PATENT COSTS
12 Months Ended
Sep. 30, 2011
Notes to Financial Statements  
PATENT COSTS

NOTE 4 – PATENT COSTS

 

Patent costs represent the capitalized purchase price of assets acquired in the secured party sale as part of the Company’s previously announced strategy to create a rollup of undervalued biotechnology companies and assets. As of September 30, 2011, the Company had purchased $800,000 worth of biotechnology patents and other intellectual property. In these acquisitions, the Company used approximately $300,000 in cash and issued a $500,000 convertible debenture for the remainder of the cost which is secured by the acquired assets.

 

The Company amortizes its patents over life of the each patent. During the years ended September 30, 2011 and 2010, the Company recognized $78,480 and $19,593 in amortization expense on the patents, respectively. The amortization expense has been included in research and development expense.

 

The below table show remaining amortization for each of the five succeeding fiscal years.

 

2012 78,274
2013 77,790
2014 77,350
2015 74,558
2016 73,199
Thereafter 320,756