Note 7. Intangible assets

Accounting policy

Capitalization of development expenses

In accordance with IAS 38 Intangible Assets, development expenses are recorded as intangible assets only if all the following criteria are met:

Because of the risks and uncertainties associated with the development of a therapeutic product candidate, including obtaining regulatory authorizations, the Company believes that the six criteria provided by IAS 38 have not been fulfilled to date and will not be fulfilled until a regulatory filing has been made in a major market and approval is obtained. The application of this principle has resulted in all development costs being expensed as incurred in all periods presented.

Other intangible assets

The other intangible assets we acquired with definite useful lives are recognized at cost less accumulated amortization and impairment. Amortization expense is recorded on a straight-line basis over the estimated useful lives of the intangible assets, in the line Research and Development expenses or Selling, general and administrative expenses of the Statement of Consolidated Operations, depending on the use of the related asset.

The estimated useful lives are as follows:

For the years ended December 31, 2024 and December 31, 2025, the additions of respectively $1.3 million and $1.2 million are related to a right to license certain patents.