| Note 7. INTANGIBLE ASSETS |
NOTE 7 – INTANGIBLE ASSETS
Intangible assets as of
December 31, 2016 and 2015 consisted of the following:
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|
December 31, 2016 |
|
December 31, 2015 |
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|
Estimated Useful Life in Years |
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
|
Net
Carrying Value
|
|
Gross Carrying Amount |
|
Accumulated Amortization |
|
|
Net Carrying Value |
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|
|
|
|
|
|
|
|
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|
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|
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|
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|
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| Amortized Intangible Assets: |
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|
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|
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|
|
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|
|
|
|
|
|
|
|
|
| Customer Relationships |
|
5 to 12 |
|
$ |
8,960,700 |
|
$ |
(780,960 |
) |
|
$ |
8,179,740 |
|
$ |
212,400 |
|
$ |
(113,988 |
) |
|
$ |
98,412 |
| Trade Brands |
|
2 to 8 |
|
|
495,520 |
|
|
(89,907 |
) |
|
|
405,613 |
|
|
20,520 |
|
|
– |
|
|
|
20,520 |
| Dispensary License |
|
14 |
|
|
10,270,000 |
|
|
(550,179 |
) |
|
|
9,719,821 |
|
|
– |
|
|
– |
|
|
|
– |
| Patent |
|
2 |
|
|
3,078 |
|
|
(1,154 |
) |
|
|
1,924 |
|
|
– |
|
|
– |
|
|
|
– |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Amortized Intangible Assets |
|
|
|
|
19,729,298 |
|
|
(1,422,200 |
) |
|
|
18,307,098 |
|
|
232,920 |
|
|
(113,988 |
) |
|
|
118,932 |
| |
|
|
|
|
|
|
|
|
|
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|
|
|
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| Unamortized Intangible Assets: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade Name |
|
Indefinite |
|
|
5,320,000 |
|
|
– |
|
|
|
5,320,000 |
|
|
– |
|
|
– |
|
|
|
– |
| |
|
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|
|
|
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|
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|
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|
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|
|
|
|
|
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| Total Unamortized Intangible Assets |
|
|
|
|
5,320,000 |
|
|
– |
|
|
|
5,320,000 |
|
|
– |
|
|
– |
|
|
|
– |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Total Intangible Assets |
|
|
|
$ |
25,049,298 |
|
$ |
(1,422,200 |
) |
|
$ |
23,627,098 |
|
$ |
232,920 |
|
$ |
(113,988 |
) |
|
$ |
118,932 |
| |
|
|
|
|
|
|
|
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|
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Intangible assets with finite lives are amortized
over their estimated useful lives. We recorded amortization expense of $1,308,212, $42,480 and $42,480 for the years ended December
31, 2016, 2015 and 2014, respectively. Based solely on the amortizable intangible assets recorded at December 31, 2016, we estimate
amortization expense for the next five years to be as follows:
| Year Ending |
|
|
|
| December 31, |
|
Amount |
| |
|
|
|
| 2017 |
|
$ |
1,718,104 |
| 2018 |
|
|
1,668,789 |
| 2019 |
|
|
1,645,582 |
| 2020 |
|
|
1,626,231 |
| 2021 |
|
|
1,460,486 |
| Thereafter |
|
|
10,187,906 |
| |
|
|
|
| |
|
$ |
18,307,098 |
|
|
|
|
Actual amortization expense to be reported in
future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives or other
relevant factors or changes.
|