| Intangible Assets, Net |
Note 8 – Intangible Assets, net
Intangible assets consist of the following:
| |
|
Indefinite-Lived
Trade
Names |
|
|
Trademarks |
|
|
Customer
Relationships |
|
|
Intellectual
Property |
|
|
Accumulated
Amortization |
|
|
Total |
|
| Balance as of January 1, 2018 |
|
$ |
1,000,000 |
|
|
$ |
24,882,577 |
|
|
$ |
3,457,724 |
|
|
$ |
262,092 |
|
|
$ |
(9,324,831 |
) |
|
$ |
20,277,562 |
|
| Purchases of intangibles |
|
|
- |
|
|
|
31,739 |
|
|
|
- |
|
|
|
6,820 |
|
|
|
- |
|
|
|
38,559 |
|
| Amortization expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,844,296 |
) |
|
|
(2,844,296 |
) |
| Impairment of intellectual
property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(236,833 |
) |
|
|
- |
|
|
|
(236,833 |
) |
| Balance as of December 31, 2018 |
|
|
1,000,000 |
|
|
|
24,914,316 |
|
|
|
3,457,724 |
|
|
|
32,079 |
|
|
|
(12,169,127 |
) |
|
|
17,234,992 |
|
| Purchases of intangibles |
|
|
- |
|
|
|
45,761 |
|
|
|
- |
|
|
|
4,335 |
|
|
|
- |
|
|
|
50,096 |
|
| Amortization expense |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(2,495,212 |
) |
|
|
(2,495,212 |
) |
| Impairment of intellectual
property |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Balance as of December 31, 2019 |
|
$ |
1,000,000 |
|
|
$ |
24,960,077 |
|
|
$ |
3,457,724 |
|
|
$ |
36,414 |
|
|
$ |
(14,664,339 |
) |
|
$ |
14,789,876 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average remaining amortization period
at December 31, 2019 (in years) |
|
|
n/a |
|
|
|
5.5 |
|
|
|
n/a |
|
|
|
8.3 |
|
|
|
|
|
|
|
|
|
Intangible assets are amortized on a straight-line
basis over the shorter of their license periods or estimated useful lives ranging from two to ten years. Amortization of intangible
assets consists of the following:
| |
|
Indefinite-Lived
Trade
Names |
|
|
Trademarks |
|
|
Customer
Relationships |
|
|
Intellectual
Property |
|
|
Accumulated
Amortization |
|
| Balance as of January 1, 2018 |
|
$ |
- |
|
|
$ |
6,214,823 |
|
|
$ |
3,110,008 |
|
|
$ |
- |
|
|
$ |
9,324,831 |
|
| Amortization expense |
|
|
- |
|
|
|
2,494,174 |
|
|
|
347,716 |
|
|
|
2,406 |
|
|
|
2,844,296 |
|
| Balance as of December 31, 2018 |
|
|
- |
|
|
|
8,708,997 |
|
|
|
3,457,724 |
|
|
|
2,406 |
|
|
|
12,169,127 |
|
| Amortization expense |
|
|
- |
|
|
|
2,495,212 |
|
|
|
- |
|
|
|
- |
|
|
|
2,495,212 |
|
| Balance as of December 31, 2019 |
|
$ |
- |
|
|
$ |
11,204,209 |
|
|
$ |
3,457,724 |
|
|
$ |
2,406 |
|
|
$ |
14,664,339 |
|
As of December 31, 2018, management determined
that the projected cash flows from certain intellectual property would not be sufficient to recover the carrying value of those
assets. Accordingly, the Company recorded an impairment charge of $236,833 which is included in operating costs and expenses on
the accompanying consolidated statements of operations.
Estimated future amortization expense
is as follows:
Years
Ending December 31, |
|
|
|
| |
|
|
|
| 2020 |
|
|
2,498,676 |
|
| 2021 |
|
|
2,498,676 |
|
| 2022 |
|
|
2,498,676 |
|
| 2023 |
|
|
2,498,676 |
|
| 2024 |
|
|
2,498,676 |
|
| Thereafter |
|
|
1,296,496 |
|
| |
|
$ |
13,789,876 |
|
|