Developed technology and trade names were acquired as part of the Veloxum transaction in May 2014. Acquisition related intangibles are amortized over their estimated useful lives based on expected future benefit.

 

The carrying amounts of the intangible assets as of July 31, 2015 and 2014 are as follows:

 

 

 

During the fiscal year ended July 31, 2015, the Company developed new features and added functionality to its software as requested by its partner, PC Driver, under the joint development and license agreement (Note 2). During the year ended July 31, 2015, the Company incurred $343,911 of additional development cost that was capitalized as intangible asset.

 

The amortization expense associated with intangible assets was $781,380 and $157,800 for the years ended July 31, 2015 and 2014, all of which was recorded in general and administrative expenses. As of July 31, 2015, the amortization expense related to identifiable intangible assets in future periods is expected to be as follows:

 

 

A long-lived asset or asset group that is held and used should be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount for the long-live asset or asset group might not be recoverable. As a result, a company is not required to perform an impairment analysis if indicators of impairment are not present. Instead, a company would assess the need for an impairment write-down only if an indicator of impairment (also referred to as a triggering event) is present. As of July 31, 2015, no triggering events have occurred which would indicate that the acquired Veloxum developed technology and trade name values may not be recoverable. The strategy and plans that had been put in place at the original acquisition date were still effective and progressing as planned.