| 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.
|