| Intangible assets |
Intangible
assets as of December 31, 2018 and 2017:
| |
|
|
|
|
December
31, 2018 |
|
|
|
|
December
31, 2017 |
|
| |
|
Estimated
Useful Life in Years |
|
|
Gross
Carrying
Amount
|
|
|
Accumulated
Amortization |
|
|
Net
Carrying
Amount
|
|
|
Gross
Carrying
Value
|
|
|
Accumulated
Amortization |
|
|
Net
Carrying
Value
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortizing
Intangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Customer
Relationships |
|
3 to
5 |
|
|
$ |
8,072,400 |
|
|
$ |
(3,596,562 |
) |
|
$ |
4,475,838 |
|
|
$ |
8,072,400 |
|
|
$ |
(1,345,191 |
) |
|
$ |
6,727,209 |
|
| Trademarks
and Patent |
|
2 to 8 |
|
|
|
195,520 |
|
|
|
(116,552 |
) |
|
|
78,968 |
|
|
|
195,520 |
|
|
|
(77,448 |
) |
|
|
118,072 |
|
| Dispensary
Licenses |
|
14 |
|
|
|
10,270,000 |
|
|
|
(1,984,632 |
) |
|
|
8,285,368 |
|
|
|
10,270,000 |
|
|
|
(1,283,751 |
) |
|
|
8,986,249 |
|
| Management
Service Agreement |
|
15 |
|
|
|
370,332 |
|
|
|
(31,891 |
) |
|
|
338,441 |
|
|
|
6,621,580 |
|
|
|
- |
|
|
|
6,621,580 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total
Amortizing Intangible Assets |
|
|
|
|
|
18,908,252 |
|
|
|
(5,729,638 |
) |
|
|
13,178,614 |
|
|
|
25,159,500 |
|
|
|
(2,706,390 |
) |
|
|
22,453,110 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 |
|
|
|
|
$ |
24,228,252 |
|
|
$ |
(5,729,638 |
) |
|
$ |
18,498,614 |
|
|
$ |
30,479,500 |
|
|
$ |
(2,706,390 |
) |
|
$ |
27,773,110 |
|
|
| Estimated amortization expense of intangible assets |
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:
| |
|
Year Ending December 31, |
|
| |
|
2019 |
|
|
2020 |
|
|
2021 |
|
|
2022 |
|
|
2023
and thereafter
|
|
|
Total |
|
| Amortization expense |
|
$ |
1,452,361 |
|
|
$ |
1,452,361 |
|
|
$ |
1,414,017 |
|
|
$ |
1,413,257 |
|
|
$ |
8,996,850 |
|
|
$ |
14,728,846 |
|
|