| Goodwill and Intangible Assets, Net |
Note 6: Goodwill and Intangible Assets,
Net
Goodwill
In 2013, the Company recognized $10,365,806
in Goodwill, representing the excess of the fair value of the consideration for the Merger over net identifiable assets acquired.
Pursuant to FASB ASC 350-20, Goodwill is not subject to amortization but is subject to annual review to determine if certain events
warrant impairment to the Goodwill asset. Through September 30, 2019, the Company has not recognized any impairment to Goodwill.
Intangible Assets, Net
The Company had the following intangible
assets as of September 30, 2019, and December 31, 2018:
| |
|
September 30,
2019
|
|
|
December 31,
2018
|
|
| Trademarks (a) |
|
$ |
129,831 |
|
|
$ |
129,831 |
|
| Product Masters (a) |
|
|
64,676 |
|
|
|
64,676 |
|
| Other Intangible Assets (a) |
|
|
272,528 |
|
|
|
272,529 |
|
| Intangible Assets, Gross |
|
|
467,035 |
|
|
|
467,036 |
|
| Less Accumulated Amortization (b) |
|
|
(405,996 |
) |
|
|
(377,048 |
) |
| Intangible Assets, Net |
|
$ |
61,039 |
|
|
$ |
89,988 |
|
| |
(a) |
Pursuant to FASB ASC 350-30-35, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. Through September 30, 2019, the Company has not recognized any impairment expense related to these assets. |
| |
(b) |
During the three months ended September 30, 2019 and September 30, 2018, the Company recognized $9,456 and $9,560, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. During the nine months ended September 30, 2019 and September 30, 2018, the Company recognized $28,949 and $37,877, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets. |
Expected future intangible asset amortization as of September
30, 2019 is as follows:
| Fiscal Year: |
|
|
|
|
| |
2019 |
|
|
$ |
9,456 |
|
| |
2020 |
|
|
|
37,835 |
|
| |
2021 |
|
|
|
9,698 |
|
| |
2022 |
|
|
|
1,861 |
|
| |
2023 |
|
|
|
1,465 |
|
| |
2024 |
|
|
|
724 |
|
| |
Total |
|
|
$ |
61,039 |
|
|