Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.19.1
Intangible Assets
12 Months Ended
Dec. 31, 2018
Intangible Assets, Net (Excluding Goodwill) [Abstract]  
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.