| n. | Research and development expenses |
Research expenses are charged to profit or loss as incurred. An intangible asset arising from development of the Company’s products is recognized if all of the following conditions are met:
| ● | It is technically feasible to complete the intangible asset so that it will be available for use; | |
| ● | Management intends to complete the intangible asset and use it or sell it; | |
| ● | There is an ability to use or sell the intangible asset; | |
| ● | It can be demonstrated how the intangible asset will generate probable future economic benefits; | |
| ● | Adequate technical, financial and other resources to complete the development and to use or sell the intangible asset are available; | |
| ● | Costs associated with the intangible asset during development can be measured reliably. |
Other development costs that do not meet the above criteria are recognized as expenses as incurred. Development costs previously recognized as an expense are not recognized as an asset in a subsequent period.
As of December 31, 2017, the Company has not yet capitalized any development costs.