Annual and transition report of foreign private issuers pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

v3.23.2
INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2022
INTANGIBLE ASSETS

NOTE 13 — INTANGIBLE ASSETS

 

The Company’s intangible assets consist of costs incurred in connection with the development of the Company’s digital education software platform, the acquisition of customer relationships and trademarks.

 

 

A reconciliation of intangible assets for the years ended December 31, 2022 and 2021 are as follows:

 

    Balance as
of
December 31,
2021
    Software
Development
Additions
    Acquisition of
Intangibles
    Amortization
Expense
    Impairment     Foreign
Currency
Translation
    Balance as
of
December 31,
2022
 
GeniusU software platform   $ 2,811,496     $ 743,995     $     $     $ (1,084,613 )   $     $ 2,470,878  
Trade names, trademarks and domain names     13,234             6,919,356                   355       6,932,945  
Customer Relationship                   8,964,000       (321,832 )                   8,642,168  
Accumulated amortization     (1,429,761 )                 (508,937 )                 (1,938,698 )
Net carrying value   $ 1,394,969     $ 743,995     $ 15,883,356     $ (830,769 )   $ (1,084,613 )   $ 355     $ 16,107,293  

 

   

Balance as
of
December

31,
2020

    Software
Development
Additions
    Acquisition of
Intangibles
    Amortization
Expense
    Foreign
Currency
Translation
    Balance as
of
December 31,
2021
 
GeniusU software platform 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  

 

During the years ended December 31, 2022 and 2021, the Company recorded amortization of intangible assets in the amount of $830,769 and $424,080 respectively. The Company impaired $1.1 million of developed software at GeniusU due to a decrease in the fair value of the subsidiary based on a discounted cash flow model.

 

Annual estimated total amortization expense is $1.5 million, $1.42 million, $1.33 million for 2023 through 2025 and $12.93 million thereafter.