INTANGIBLE ASSETS, NET
|12 Months Ended|
Dec. 31, 2018
|Intangible Assets Net|
|NOTE 9. INTANGIBLE ASSETS, NET||
Intangible assets as of December 31, 2018 and 2017:
In the fourth quarter of 2018, the Company reduced the estimated useful life of its customer relationships to better reflect the expected benefit period. The change in estimated useful life has been accounted for as a change in accounting estimate. The reduction in the useful life increased loss from operations and net loss by approximately $1.58 million for the year ended December 31, 2018.
During the fourth quarter of 2017, the Company recorded an impairment charge for intangible assets related to customer relationships and trademarks and patents held by Edible Garden Corp. The impairment charge of $0.75 million was recorded in other expense in our consolidated statement of operations.
The Company recorded amortization expense of $1.47 million and $1.72 million for the years ended December 31, 2018 and 2017, respectively.
Based solely on the amortizable intangible assets recorded at December 31, 2018, the Company estimates amortization expense for the next five years to be as follows:
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.
The entire disclosure for all or part of the information related to intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef