General form of registration statement for all companies including face-amount certificate companies

Intangible Assets, Net

v3.20.1
Intangible Assets, Net
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
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