| NOTE 7. INTANGIBLE ASSETS, NET |
Intangible
assets, net consist of the following:
| |
|
|
|
|
September
30, 2017 |
|
|
December
31, 2016 |
|
| |
|
Estimated
Useful Life
in
Years
|
|
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization |
|
|
Net
Carrying
Value
|
|
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization |
|
|
Net
Carrying
Value
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortizing
Intangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Customer
Relationships |
|
5 to
12 |
|
|
$ |
8,960,700 |
|
|
$ |
(1,437,312 |
) |
|
$ |
7,523,388 |
|
|
$ |
8,960,700 |
|
|
$ |
(780,960 |
) |
|
$ |
8,179,740 |
|
| Trade
Brands and Patent |
|
2 to
8 |
|
|
|
498,598 |
|
|
|
(173,106 |
) |
|
|
325,492 |
|
|
|
498,598 |
|
|
|
(91,061 |
) |
|
|
407,537 |
|
| Dispensary
Licenses |
|
|
14 |
|
|
|
10,270,000 |
|
|
|
(1,100,358 |
) |
|
|
9,169,642 |
|
|
|
10,270,000 |
|
|
|
(550,179 |
) |
|
|
9,719,821 |
|
| Management
Service Agreement |
|
|
15 |
|
|
|
6,621,580 |
|
|
|
- |
|
|
|
6,621,580 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Amortizing Intangible Assets |
|
|
|
|
|
|
26,350,878 |
|
|
|
(2,710,776 |
) |
|
|
23,640,102 |
|
|
|
19,729,298 |
|
|
|
(1,422,200 |
) |
|
|
18,307,098 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-Amortizing
Intangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Trade
Name |
|
|
Indefinite |
|
|
|
5,320,000 |
|
|
|
- |
|
|
|
5,320,000 |
|
|
|
5,320,000 |
|
|
|
- |
|
|
|
5,320,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Non-Amortizing Intangible Assets |
|
|
|
|
|
|
5,320,000 |
|
|
|
- |
|
|
|
5,320,000 |
|
|
|
5,320,000 |
|
|
|
- |
|
|
|
5,320,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Intangible Assets, Net |
|
|
|
|
|
$ |
31,670,878 |
|
|
$ |
(2,710,776 |
) |
|
$ |
28,960,102 |
|
|
$ |
25,049,298 |
|
|
$ |
(1,422,200 |
) |
|
$ |
23,627,098 |
|
The
Company recorded amortization expense of $429,526 and $298,902 for the three months ended September 30, 2017 and 2016, respectively,
and $1,288,576 and $826,400 for the nine months ended September 30, 2017 and 2016, respectively.
Future
estimated amortization expense of existing intangible assets is as follows:
| |
|
Three
months ending |
|
|
Year
Ending December 31, |
|
| |
|
December
31, 2017 |
|
|
2018 |
|
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022
and
thereafter
|
|
|
Total |
|
| Amortization expense |
|
$ |
539,614 |
|
|
$ |
1,783,635 |
|
|
$ |
1,769,913 |
|
|
$ |
1,769,913 |
|
|
$ |
1,731,568 |
|
|
$ |
16,045,459 |
|
|
$ |
23,640,102 |
|
|