| INTANGIBLE ASSETS |
NOTE 12 — INTANGIBLE ASSETS
The Company’s intangible assets consist of costs incurred in connection with the development of the Company’s digital education software platform.
A reconciliation of intangible assets for the years ended December 31, 2021 and 2020 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
Software |
|
Purchase |
|
|
|
Foreign |
|
Balance at |
|
|
December 31, |
|
Development |
|
of |
|
Amortization |
|
Currency |
|
December 31, |
|
|
2020 |
|
Additions |
|
Intangibles |
|
Expense |
|
Translation |
|
2021 |
GeniusU software platform |
|
$ |
2,007,182 |
|
$ |
804,314 |
|
$ |
— |
|
$ |
— |
|
|
— |
|
$ |
2,811,496 |
Trademarks |
|
|
13,234 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
13,234 |
Accumulated amortization |
|
|
(1,015,502) |
|
|
— |
|
|
— |
|
|
(424,080) |
|
|
9,821 |
|
|
(1,429,761) |
Net carrying value |
|
$ |
1,004,914 |
|
$ |
804,314 |
|
$ |
— |
|
$ |
(424,080) |
|
$ |
9,821 |
|
$ |
1,394,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
Software |
|
Purchase |
|
|
|
Foreign |
|
Balance at |
|
|
December 31, |
|
Development |
|
of |
|
Amortization |
|
Currency |
|
December 31, |
|
|
2019 |
|
Additions |
|
Intangibles |
|
Expense |
|
Translation |
|
2020 |
GeniusU software platform |
|
$ |
1,563,193 |
|
$ |
424,530 |
|
|
|
|
$ |
— |
|
$ |
19,459 |
|
$ |
2,007,182 |
Trademarks |
|
|
|
|
|
— |
|
$ |
13,234 |
|
|
|
|
|
|
|
|
13,234 |
Accumulated amortization |
|
|
(640,814) |
|
|
— |
|
|
— |
|
|
(359,822) |
|
|
(14,866) |
|
|
(1,015,502) |
Net carrying value |
|
$ |
922,379 |
|
$ |
424,530 |
|
$ |
13,234 |
|
$ |
(359,822) |
|
$ |
4,593 |
|
$ |
1,004,914 |
During the years ended December 31, 2021 and 2020, the Company recorded amortization of intangible assets in the amount of $424,080 and $359,822 respectively, which is included in cost of revenue on the accompanying statements of operations and comprehensive loss.
|
NOTE 12 — INTANGIBLE ASSETS (as restated)
The Company’s intangible assets consist of costs incurred in connection with the development of the Company’s digital education software platform.
A reconciliation of intangible assets for the years ended December 31, 2020 and 2019 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
Software |
|
Purchase |
|
|
|
Foreign |
|
Balance at |
|
|
December 31, |
|
Development |
|
of |
|
Amortization |
|
Currency |
|
December 31, |
|
|
2019 |
|
Additions |
|
Intangibles |
|
Expense |
|
Translation |
|
2020, as restated |
Trademarks |
|
$ |
— |
|
$ |
— |
|
$ |
13,234 |
|
$ |
— |
|
$ |
— |
|
$ |
13,234 |
GeniusU software platform |
|
$ |
1,563,193 |
|
$ |
424,530 |
|
$ |
— |
|
$ |
— |
|
$ |
19,459 |
|
$ |
2,007,182 |
Accumulated amortization |
|
|
(640,814) |
|
|
— |
|
|
— |
|
|
(359,822) |
|
|
(14,866) |
|
|
(1,015,502) |
Net carrying value |
|
$ |
922,379 |
|
$ |
424,530 |
|
$ |
13,234 |
|
$ |
(359,822) |
|
$ |
4,593 |
|
$ |
1,004,914 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at |
|
Software |
|
Purchase |
|
|
|
Foreign |
|
Balance at |
|
|
December 31, |
|
Development |
|
of |
|
Amortization |
|
Currency |
|
December 31, |
|
|
2018 |
|
Additions |
|
Intangibles |
|
Expense |
|
Translation |
|
2019, as restated |
GeniusU software platform |
|
$ |
1,103,705 |
|
$ |
423,959 |
|
$ |
— |
|
$ |
— |
|
$ |
35,529 |
|
$ |
1,563,193 |
Accumulated Amortization |
|
|
(358,067) |
|
|
|
|
|
|
|
|
(268,499) |
|
|
(14,248) |
|
|
(640,814) |
Net carrying value |
|
$ |
745,638 |
|
$ |
423,959 |
|
$ |
— |
|
$ |
(268,499) |
|
$ |
21,281 |
|
$ |
922,379 |
During the years ended December 31, 2020 and 2019, the Company recorded amortization of intangible assets in the amount of $359,822 and $268,499 respectively, which is included in cost of revenue on the accompanying statements of operations and comprehensive loss.
See Note 4 — Business Combinations for additional details related to the Entrepreneurs Institute and Entrepreneur Resorts acquisitions.
|