v3.22.2.2
Intangible Assets
 6 Months Ended 12 Months Ended
Jun. 30, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]    
INTANGIBLE ASSETS

NOTE 6 – INTANGIBLE ASSETS

 

Krillase

 

As part of the asset acquisition of ACB Holding AB, Reg. No. 559119-5762, completed on September 12, 2018, Marizyme acquired all rights, titles, and interest in the Krillase technology, a group of intangible assets worth $28,600,000. Krillase is a naturally occurring enzyme that acts to break protein bonds and has applications in wound debridement, wound healing, dental care and thrombosis. The useful lives of the intangible assets are based on the life of the patent and related technology. The patents and related technology for Krillase have not been amortized since the acquisition, as they have not yet been put into operations. The Company expects to put Krillase into operations and establish the first stream of revenue from the sale of the product in 2023.

 

DuraGraft

 

As part of Somah acquisition in 2020, Marizyme purchased $18,170,000 of intangible assets related to the DuraGraft® technology.

 

My Health Logic

 

As part of My Health Logic acquisition (Note 4), Marizyme purchased MHL’s lab-on-chip technology platform and its patient-centric, digital point-of-care diagnostic device, MATLOC, fair valued at an aggregate amount of $6,600,000.

 

   June 30, 2022   December 31, 2021 
   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount 
Krillase intangible assets  $28,600,000   $
-
   $28,600,000   $28,600,000   $
-
   $28,600,000 
Patents in process   122,745    
-
    122,745    122,745    
-
    122,745 
DuraGraft patent   5,256,000    (774,922)   4,481,078    5,256,000    (572,768)   4,683,232 
Duragraft - Distributor relationship   308,000    (59,033)   248,967    308,000    (43,633)   264,367 
Duragraft IPR&D - Cyto Protectant Life Sciences   12,606,000    
-
    12,606,000    12,606,000    
-
    12,606,000 
My Health Logic - Trade name   450,000    (16,875)   433,125    450,000    (804)   449,196 
My Health Logic - Biotechnology   4,600,000    (142,059)   4,457,941    4,600,000    (6,765)   4,593,235 
My Health Logic - Software   1,550,000    (54,250)   1,495,750    1,550,000    (2,583)   1,547,417 
Total intangibles  $53,492,745   $(1,047,139)  $52,445,606   $53,492,745   $(626,553)  $52,866,192 

 

Goodwill  DuraGraft   My Health Logic   Total 
Balance, December 31, 2020  $
-
   $
-
   $
-
 
Additions on acquisitions   5,416,000    1,774,656    7,190,656 
Impairment   
-
    
-
    
-
 
Balance, December 31, 2021 and June 30, 2022  $5,416,000   $1,774,656   $7,190,656 

 

The following changes to the Company’s intangible assets had taken place in the periods indicated:

 

Balance, December 31, 2020  $42,278,211 
Acquired in Somah Transaction   4,022,271 
Acquired in My Health Logic Transaction   6,600,000 
Additions   2,775 
Amortization expense   (37,065)
Balance, December 31, 2021  $52,866,192 
Amortization expense   (420,586)
Balance, June 30, 2022  $52,445,606 

 

Future amortizations for Duragraft and My Health Logic intangible assets for the next five years will be $841,172 for each year from 2023 through 2027 and $6,910,999 for 2028 and thereafter. Amortization related to the Krillase product and in process research and development will be determined upon the Company achieving commercialization.

4. Intangible Assets and Goodwill

 

Krillase

 

As part of the asset acquisition of ACB Holding AB, Reg. No. 559119-5762, completed on September 12, 2018, Marizyme acquired all rights, titles, and interest in the Krillase technology, a group of intangible assets worth $28,600,000. Krillase is a naturally occurring enzyme that acts to break protein bonds and has applications in wound debridement, wound healing, dental care and thrombosis. The useful lives of the intangible assets are based on the life of the patent and related technology. The patents and related technology for Krillase have not been amortized since the acquisition, as they have not yet been put into operations.

 

The Company used the qualitative approach and concluded that it was more-likely-than-not that its Krillase assets were not impaired during the years ended December 31, 2021 and 2020.

 

DuraGraft

 

As part of Somah acquisition (Note 2), Marizyme purchased $18,170,000 of intangible assets related to the DuraGraft® technology. No impairment has been recognized on DuraGraft intangible assets for the years ended December 31, 2021 and 2020.

 

My Health Logic

 

As part of My Health Logic acquisition (Note 2), Marizyme purchased MHL’s lab-on-chip technology platform and its patient-centric, digital point-of-care screening device, MATLOC 1, fair valued at an aggregate amount of $6,600,000.

 

Intangible Assets  December 31, 2021   December 31, 2020 
   Gross Carrying Amount   Accumulated Amortization   Net
Carrying Amount		   Gross Carrying Amount   Accumulated Amortization   Net
Carrying Amount		 
Krillase intangible assets  $28,600,000   $-   $28,600,000   $28,600,000   $-   $28,600,000 
Patents in process   122,745    -    122,745    119,971    -    119,971 
DuraGraft patent   5,256,000    (572,768)   4,683,232    14,147,729    (589,489)   13,558,240 
DuraGraft - Distributor relationship   308,000    (43,633)   264,367    
-
    
-
    
-
 
DuraGraft IPR&D - Cyto Protectant Life Sciences   12,606,000    -    12,606,000    
-
    
-
    
-
 
My Health Logic - Trade name   450,000    (804)   449,196    
-
    
-
    
-
 
My Health Logic - Biotechnology   4,600,000    (6,765)   4,593,235    
-
    
-
    
-
 
My Health Logic - Software   1,550,000    (2,583)   1,547,417    
-
    
-
    
-
 
Total intangible assets  $53,492,745   $(626,553)  $52,866,192   $42,867,700   $(589,489)  $42,278,211 

 

Goodwill

 

   DuraGraft   My Health
Logic		   Total 
Balance, December 31, 2020  $
-
   $
-
   $
-
 
Additions on acquisitions   5,416,000    1,774,656    7,190,656 
Impairment   
-
    
-
    
-
 
Balance, December 31, 2021  $5,416,000   $1,774,656   $7,190,656 

 

The following changes to the Company’s intangible assets had taken place in the periods indicated:

 

Balance, December 31, 2019  $28,613,000 
Acquired in asset purchase agreement   14,147,729 
Additions   106,971 
Amortization expense   (589,489)
Balance, December 31, 2020  $42,278,211 
Acquired in Somah Transaction1   4,022,271 
Acquired in MHL Transaction   6,600,000 
Additions   2,775 
Amortization expense1   (37,065)
Balance, December 31, 2021  $52,866,192 

 

1 To account for Somah Transaction measurement period adjustments, the Company restated the Quarterly Report on Form 10-Q for the three and six month ended June 30, 2021, originally filed on August 23, 2021. As a result of the restatement, the value of DuraGraft intangibles purchased with the Somah Transaction increased by $4,022,271 and related overestimated amortization of the intangibles decreased by $898,026 for the year ended December 31, 2021.

 

As the result of the Somah Transaction measurement period adjustments, the Company has recorded amortization expense of $37,066 on its intangibles for the year ended December 31, 2021 (2020 - $589,489).

 

Future amortizations for DuraGraft and My Health Logic intangible assets for the next five years will be $841,172 for each year from 2022 through 2026 and $7,331,585 for 2027 and thereafter. Amortization related to in process research and development will be determined upon the Company achieving commercialization.