(5) Intangible Assets

Intangible assets consisted of the following:

Schedule of Intangible Assets

On April 7, 2021, the Company entered into a Technology License Agreement, under which the Company licensed certain proprietary technology. Under the terms of the license, the Company issued 265,728 shares of its common stock to the licensor upon signing. The Company also issued 332,160 shares to the licensor in May 2021 upon the filing of a patent application related to the licensed technology. Upon completion of the Company’s IPO, 186,010 shares were due to the licensor and the related amount of $700,000 is included in accounts payable and accrued liabilities – related parties. The Company will issue up to 730,752 additional shares to the licensor upon the achievement of certain milestones. In addition, the Company has granted stock options for 531,456 shares at an exercise price of $3.76 per share that will become exercisable for three years after the end of the fiscal year in which certain sales levels are achieved using the licensed technology. The Company has the option for four years after the achievement of certain milestones to either acquire the technology or acquire the licensor for the purchase price of 1,062,913 of its common shares. Until the Company exercise one of these options, it will share with the licensor 50% of pre-revenue costs and 50% of the net revenue, as defined, from the use of the technology.

Amortization expense on intangible assets totaled $494,953 and $247,159 for the nine months ended September 30, 2021 and 2020, respectively. Amortization expense on intangible assets totaled $202,484 and $89,984 for the three months ended September 30, 2021 and 2020, respectively.

Future amortization schedule for intangible assets as of September 30, 2021 is as follows:

Schedule of Amortization for Intangible Assets