Registration of securities issued in business combination transactions

Note 9 - Intangible Assets and Goodwill

v3.24.0.1
Note 9 - Intangible Assets and Goodwill
9 Months Ended 12 Months Ended
Sep. 30, 2023
Dec. 31, 2022
Notes to Financial Statements    
Goodwill and Intangible Assets Disclosure [Text Block]

Note 6.         Intangible Assets and Goodwill

 

Information regarding our intangible assets is as follows:

 

   

Weighted Average Useful Life (Years)

   

Balance December 31, 2022

   

Additions

   

Balance September 30, 2023

 

Intangible assets with estimated useful lives

                               

Customer relationships

    8.0     $ 1,090,000     $ -     $ 1,090,000  

Non-compete agreements

    3.0       120,000       -       120,000  

Accumulated amortization

            (308,217 )     (132,183 )     (440,400 )

Sub-total

            901,783       (132,183 )     769,600  

Intangible assets with indefinite lives

                               

Trade names

   

Indefinite

      280,000       -       280,000  

Net identifiable intangible assets

          $ 1,181,783     $ (132,183 )   $ 1,049,600  

 

   

Weighted Average Useful Life (Years)

   

Balance December 31, 2021

   

Additions

   

Balance September 30, 2022

 

Intangible assets with estimated useful lives

                               

Customer relationships

    8.0     $ 1,090,000     $ -     $ 1,090,000  

Non-compete agreements

    3.0       120,000       -       120,000  

Accumulated amortization

            (131,973 )     (132,183 )     (264,156 )

Sub-total

            1,078,027       (132,183 )     945,844  

Intangible assets with indefinite lives

                               

Trade names

   

Indefinite

      280,000       -       280,000  

Net identifiable intangible assets

          $ 1,358,027     $ (132,183 )   $ 1,225,844  

 

As of September 30, 2023, expected amortization expense relating to purchased intangible assets for each of the next five years and thereafter is as follows:

 

2023

  $ 44,061  

2024

    146,307  

2025

    136,248  

2026

    136,248  

2027

    136,248  

Thereafter

    170,488  

Total

  $ 769,600  

 

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.