Titan Medical Inc (TMDIF)

[elMoose]

So you know: Not declaring intangibles such as patents by Titan is not about taxes. It is about financial rules . The patent that have been purchased can appear in financial statements but not patents that been developed in-house and by the company and hence and those are treated as intangibles. In fact that is a rule developed by the financing regulators to prevent cooking of the books.




"Valuing Intangible Assets
Businesses can create or acquire intangible assets. For example, a business may create a mailing list of clients or establish a patent. If a business creates an intangible asset, it can write off the expenses from the process, such as filing the patent application, hiring a lawyer, and paying other related costs.

In addition, all the expenses along the way of creating the intangible asset are expensed. However, intangible assets created by a company do not appear on the balance sheet and have no recorded book value. Because of this, when a company is purchased, often the purchase price is above the book value of assets on the balance sheet. The purchasing company records the premium paid as an intangible asset on its balance sheet."

KEY TAKEAWAYS

- An intangible asset is an asset that is not physical in nature, such as a patent, brand, trademark, or copyright.
Businesses can create or acquire intangible assets.
- An intangible asset can be considered indefinite (a brand name, for example) or definite, like a legal agreement or contract.
- Intangible assets created by a company do not appear on the balance sheet and have no recorded book value. "
https://www.investopedia.com/terms/i/intangibleasset.asp