Annual report pursuant to Section 13 and 15(d)

Note 9 - Intangible Assets and Goodwill

v3.23.1
Note 9 - Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

Note 9.         Intangible Assets and Goodwill

 

The following table summarizes our intangible assets as of December 31, 2022 and 2021 and the changes during 2022:

 

   

Weighted

Average

Useful Life

(Years)

   

December 31,

2021

   

Additions

   

Impairment

   

December 31,

2022

 

Intangible assets with estimated useful lives

                                       

Technology

    5.0     $ 2,900,000     $ -     $ (1,526,564 )   $ 1,373,436  

Customer relationships

    6.4       4,950,000       -       (2,122,629 )     2,827,371  

Non-compete agreements

    3.0       120,000       -       -       120,000  

Accumulated amortization

            (201,032 )     (1,399,572 )     -       (1,600,604 )

Sub-total

            7,768,968       (1,399,572 )     (3,649,193 )     2,720,203  

Intangible assets with indefinite lives

                                       

Trade names

 

Indefinite

      280,000       -       -       280,000  

Net identifiable intangible assets

          $ 8,048,968     $ (1,399,572 )   $ (3,649,193 )   $ 3,000,203  

 

As of December 31, 2022, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows:

 

2023

  $ 578,088    

2024

    548,151    

2025

    538,092    

2026

    537,846    

2027

    347,538    

Thereafter

    170,488    

Total

  $ 2,720,203    

 

Information regarding our goodwill for each operating segment is as follows:

 

   

Tellenger

   

Blockchain SCM

   

Consolidated

 

Goodwill, gross

                       

Balance at December 31, 2021

  $ 1,125,101     $ 6,460,168     $ 7,585,269  

Additions

    -       -       -  

Balance at December 31, 2022

    1,125,101       6,460,168       7,585,269  
                         

Cumulative impairment loss

                       

Balance at December 31, 2021

    -       -       -  

Impairment expense

    -       (6,460,168 )     (6,460,168 )

Balance at December 31, 2022

    -       (6,460,168 )     (4,210,168 )
                         

Goodwill, net

                       

Balance at December 31, 2021

  $ 1,125,101     $ 6,460,168     $ 7,585,269  

Balance at December 31, 2022

  $ 1,125,101     $ -     $ 1,125,101  

 

See Note 6 for details on the impairments to intangible assets and goodwill recorded for the year ended December 31, 2022.