Quarterly report pursuant to Section 13 or 15(d)

Intangible assets, net

v3.19.3
Intangible assets, net
9 Months Ended
Sep. 30, 2019
Intangible assets, net  
Intangible assets, net

Note 5 — Intangible assets, net

As of September 30, 2019, intangible assets consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

Gross

    

 

 

    

 

 

 

 

 

 

 

 

Carrying

 

Accumulated

 

Net Carrying

 

 

 

 

 

 

Amount

 

Amortization

 

Amount

Finite lived intangible assets:

 

  

 

  

 

 

  

 

 

  

 

 

  

Customer relationships

 

15 years

 

14.8 years

 

$

4,270,000

 

$

268,389

 

$

4,001,611

Developed technology

 

7 years

 

6.7 years

 

$

3,800,000

 

 

561,905

 

 

3,238,095

Membership network

 

7 years

 

6.7 years

 

$

1,740,000

 

 

269,286

 

 

1,470,714

Non-compete agreements

 

2 years

 

1.7 years

 

$

50,000

 

 

27,083

 

 

22,917

Total finite lived intangible assets

 

  

 

  

 

$

9,860,000

 

$

1,126,663

 

$

8,733,337

 

 

  

 

  

 

 

  

 

 

  

 

 

  

Indefinite lived intangible assets:

 

  

 

  

 

 

  

 

 

  

 

 

  

Trademarks and tradenames

 

Indefinite

 

  

 

$

3,140,000

 

$

 —

 

$

3,140,000

Total indefinite lived intangible assets

 

  

 

  

 

$

3,140,000

 

$

 —

 

$

3,140,000

Total intangible assets

 

  

 

  

 

 

13,000,000

 

$

1,126,663

 

$

11,873,337

 

As of December 31, 2018, intangible assets consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

    

Gross

    

 

 

    

 

 

 

 

 

 

 

 

Carrying

 

Accumulated

 

Net Carrying

 

 

 

 

 

 

Amount

 

Amortization

 

Amount

Finite lived intangible assets:

 

  

 

  

 

 

  

 

 

  

 

 

  

Customer relationships

 

15 years

 

14.8 years

 

$

4,270,000

 

$

61,555

 

$

4,208,445

Developed technology

 

7 years

 

6.7 years

 

$

3,800,000

 

 

159,524

 

 

3,640,476

Membership network

 

7 years

 

6.7 years

 

$

1,740,000

 

 

82,857

 

 

1,657,143

Non-compete agreements

 

2 years

 

1.7 years

 

$

50,000

 

 

8,333

 

 

41,667

Total finite lived intangible assets

 

  

 

  

 

$

9,860,000

 

$

312,269

 

$

9,547,731

 

 

  

 

  

 

 

  

 

 

  

 

 

  

Indefinite lived intangible assets:

 

  

 

  

 

 

  

 

 

  

 

 

  

Trademarks and tradenames

 

Indefinite

 

  

 

$

3,140,000

 

$

 —

 

$

3,140,000

Total indefinite lived intangible assets

 

  

 

  

 

$

3,140,000

 

$

 —

 

$

3,140,000

Total intangible assets

 

  

 

  

 

 

13,000,000

 

$

312,269

 

$

12,687,731

 

The estimated future amortization of intangibles subject to amortization at September 30, 2019 was as follows:

 

 

 

 

 

For the Years Ended December 31, 

    

Amount

2019 (excluding the nine months ended September 30, 2019)

 

$

275,274

2020

 

 

1,092,762

2021

 

 

1,076,095

2022

 

 

1,076,095

2023

 

 

1,076,095

Thereafter

 

 

4,137,016

 

 

$

8,733,337

 

Amortization expense for the three months ended September 30, 2019 and 2018 was $275,274 and $0, respectively. Amortization expense for the nine months ended September 30, 2019 and 2018 was $814,394 and $0, respectively.