| Goodwill and Intangible Assets Disclosure [Text Block] |
Note 7. Intangible Assets and Goodwill
Information regarding our intangible assets is as follows:
| |
|
Weighted Average Useful Life (Years) |
|
|
December 31, 2021 |
|
|
Additions |
|
|
September 30, 2022 |
|
| Intangible assets with estimated useful lives |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Technology |
|
5.0 |
|
|
$ |
2,900,000 |
|
|
$ |
- |
|
|
$ |
2,900,000 |
|
| Customer relationships |
|
6.4 |
|
|
|
4,950,000 |
|
|
|
- |
|
|
|
4,950,000 |
|
| Non-compete agreements |
|
3.0 |
|
|
|
120,000 |
|
|
|
- |
|
|
|
120,000 |
|
| Accumulated amortization |
|
|
|
|
|
(201,032 |
) |
|
|
(1,049,679 |
) |
|
|
(1,250,711 |
) |
| Sub-total |
|
|
|
|
|
7,768,968 |
|
|
|
(1,049,679 |
) |
|
|
6,719,289 |
|
| Intangible assets with indefinite lives |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade names |
|
Indefinite |
|
|
|
280,000 |
|
|
|
- |
|
|
|
280,000 |
|
| Net identifiable intangible assets |
|
|
|
|
$ |
8,048,968 |
|
|
$ |
(1,049,679 |
) |
|
$ |
6,999,289 |
|
Information regarding our goodwill for each operating segment is as follows:
| |
|
Tellenger |
|
|
Blockchain SCM |
|
|
Corporate |
|
|
Consolidated |
|
| Goodwill, gross |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2021 |
$ |
785,000 |
|
$ |
4,560,098 |
|
$ |
2,240,171 |
|
$ |
7,585,269 |
|
| Additions |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Balance at September 30, 2022 |
|
785,000 |
|
|
4,560,098 |
|
|
2,240,171 |
|
|
7,585,269 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cumulative impairment loss |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2021 |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Impairment expense |
|
- |
|
|
(2,254,624 |
) |
|
- |
|
|
(2,254,624 |
) |
| Balance at September 30, 2022 |
|
- |
|
|
(2,254,624 |
) |
|
- |
|
|
(2,254,624 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Goodwill, net |
|
|
|
|
|
|
|
|
|
|
|
|
| Balance at December 31, 2021 |
$ |
785,000 |
|
$ |
4,560,098 |
|
$ |
2,240,171 |
|
$ |
7,585,269 |
|
| Balance at September 30, 2022 |
$ |
785,000 |
|
$ |
2,305,474 |
|
$ |
2,240,171 |
|
$ |
5,330,645 |
|
See Note 5, Fair Value Measurements, for a discussion of goodwill impairment charges.
As of September 30, 2022, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows:
| Remainder of 2022 |
|
$ |
349,893 |
|
| 2023 |
|
|
1,399,572 |
|
| 2024 |
|
|
1,369,635 |
|
| 2025 |
|
|
1,359,576 |
|
| 2026 |
|
|
1,326,854 |
|
| Thereafter |
|
|
913,759 |
|
| Total |
|
$ |
6,719,289 |
|
|