| Intangible Assets |
6. Intangible Assets
In fourth quarter of 2018, the Company undertook
a review of the carrying amount of its long-lived intangible assets. The Company performed its review based on both qualitative
and quantitative factors and determined that carrying value of long-lived intangible assets exceeded its implied fair value, and
as of December 31, 2018 recorded impairment charge of $2,796,000.
Intangible assets, net is as follows:
| December 31, 2018 |
|
Useful
Lives
(Years)
|
|
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization
|
|
|
Net
Carrying
Amount
|
|
| Long-lived intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales Process |
|
|
10 |
|
|
$ |
2,130,956 |
|
|
$ |
(1,692,764 |
) |
|
$ |
438,192 |
|
| Paid Member Relationships |
|
|
5 |
|
|
|
803,472 |
|
|
|
(758,972 |
) |
|
|
44,500 |
|
| Member Lists |
|
|
5 |
|
|
|
8,086,181 |
|
|
|
(7,638,331 |
) |
|
|
447,850 |
|
| Developed Technology |
|
|
3 |
|
|
|
648,000 |
|
|
|
(648,000 |
) |
|
|
- |
|
| Trade Name/Trademarks |
|
|
4 |
|
|
|
440,000 |
|
|
|
(440,000 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
12,108,609 |
|
|
|
(11,178,067 |
) |
|
|
930,542 |
|
| Indefinite-lived intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade Name |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,400 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intangible assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,020,942 |
|
| December 31, 2017 |
|
Useful
Lives
(Years)
|
|
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization
|
|
|
Net
Carrying
Amount
|
|
| Long-lived intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales Process |
|
|
10 |
|
|
$ |
3,970,000 |
|
|
$ |
(1,295,764 |
) |
|
$ |
2,674,236 |
|
| Paid Member Relationships |
|
|
5 |
|
|
|
890,000 |
|
|
|
(580,972 |
) |
|
|
309,028 |
|
| Member Lists |
|
|
5 |
|
|
|
8,957,000 |
|
|
|
(5,846,931 |
) |
|
|
3,110,069 |
|
| Developed Technology |
|
|
3 |
|
|
|
648,000 |
|
|
|
(648,000 |
) |
|
|
- |
|
| Trade Name/Trademarks |
|
|
4 |
|
|
|
440,000 |
|
|
|
(359,027 |
) |
|
|
80,973 |
|
| |
|
|
|
|
|
|
14,905,000 |
|
|
|
(8,730,694 |
) |
|
|
6,174,306 |
|
| Indefinite-lived intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade Name |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
90,400 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Intangible assets, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,264,706 |
|
Future annual estimated amortization expense
is summarized as follows:
| Years ending December 31, |
|
|
|
| 2019 |
|
$ |
568,557 |
|
| 2020 |
|
|
76,207 |
|
| 2021 |
|
|
76,207 |
|
| 2022 |
|
|
76,207 |
|
| Thereafter |
|
|
133,364 |
|
| |
|
$ |
930,542 |
|
| |
|
2018 |
|
|
2017 |
|
| Impairment charge on NAPW |
|
$ |
2,796,391 |
|
|
$ |
- |
|
| |
|
|
|
|
|
|
|
|
Amortization expense of $2,802,233 and $2,868,400
for the years ended December 31, 2018 and 2017, respectively, is recorded in depreciation and amortization expense in the accompanying
consolidated statements of operations.
|