Registration statement for securities of certain foreign private issuers

INTANGIBLE ASSETS

v3.23.3
INTANGIBLE ASSETS
 6 Months Ended 12 Months Ended
Jun. 30, 2023
Dec. 31, 2022
Notes and other explanatory information [abstract]    
INTANGIBLE ASSETS

NOTE 11 — INTANGIBLE ASSETS

 

The Company’s intangible assets consist of costs incurred in connection with the development of the Company’s digital education software platform, trademarks, and assets identified as part of business acquisitions. During the six months ended June 30, 2023, the Company incurred $322,419 (June 2022 — $313,876) of software development costs. There were no acquisitions or disposals of other intangible assets. During the six months ended June 30, 2023, the Company recorded amortization of $929,490 (June 2022 — $247,693)

 

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.