Annual report pursuant to Section 13 and 15(d)

5. Goodwill and Intangible Assets, Net

5. Goodwill and Intangible Assets, Net
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net

Note 5: Goodwill and Intangible Assets, Net




In 2013, the Company recognized $10,365,805 in Goodwill, representing the excess of the fair value of the consideration 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 December 31, 2018, the Company has not recognized any impairment to Goodwill.


Intangible Assets, Net


The Company had the following intangible assets as of December 31, 2018 and 2017:


    December 31, 2018     December 31, 2017  
Identifiable Artistic-Related Assets (a)         $ 1,740,000  
Trademarks (b)   $ 129,831       129,831  
Product Masters (b)     64,676       64,676  
Other Intangible Assets (b)     272,529       251,171  
Intangible Assets, Gross     467,036       2,185,678  
Less Accumulated Amortization (c)     (377,048 )     (329,398 )
Intangible Assets, Net   $ 89,988     $ 1,856,280  


(a) In connection with the Merger in 2013, the Company acquired $1,740,000 of Identifiable Artistic-Related Assets. These assets, related to certain properties owned by A Squared and assumed by the Company, were valued using an independent firm. Based on certain legal, regulatory, contractual, and economic factors, the Company has deemed these assets to be indefinite-lived. Hence, pursuant to FASB ASC 350-30, these assets are not subject to amortization and are tested annually for impairment. As of December 31, 2018, the Company performed an analysis and determined the Identifiable Artistic-Related Intangible Assets no longer have value and as a result has recognized $1,740,000 of impairment expense related to the Identifiable Artistic-Related Intangible Assets.


(b) 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 December 31, 2018, the Company has not recognized any impairment expense related to these assets.


(c) During the years ended December 31, 2018 and December 31, 2017, the Company recognized, $47,650 and $55,520, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.


Expected future intangible asset amortization as of December 31, 2018 is as follows:


Fiscal Year:      
2019   $ 38,405  
2020     37,825  
2021     9,698  
2022     1,861  
2023     1,465  
Remaining     734  
Total   $ 89,988