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

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2023
Intangible Assets  
INTANGIBLE ASSETS

NOTE 14 — INTANGIBLE ASSETS

 

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

 SCHEDULE OF INTANGIBLE ASSETS

    Cost     Adjustment     Accumulated depreciation     Impairment     Carrying amount as of December 31 2023     Cost     Accumulated Depreciation     Impairment     Carrying amount as of December 31 2022  
GeniusU software platform   $ 3,993,719     $ —     $ (2,510,139 )   $ (1,084,613 )   $ 398,967     $ 3,555,491     $ (1,938,698 )   $ (1,084,613 )   $ 532,180  
Trade names, trademarks and domain names     6,932,945       700,000       —       —       7,632,945       6,932,945       —       —       6,932,945  
Film Library     —       4,600,000       (676,470 )     —       3,923,530       —       —       —       —  
Customer list     —       4,200,000       (1,050,000 )     —       3,150,000       —       —       —       —  
Customer Relationship     8,964,000       (8,624,000 )     (194,691 )     —       145,309       8,964,000       (321,832 )     —       8,642,168  
    $ 19,890,664     $ 876,000     $ (4,431,300 )   $ (1,084,613 )   $ 15,250,751     $ 19,452,436     $ (2,260,530 )   $ (1,084,613 )   $ 16,107,293  

 

A reconciliation of intangible assets for the years ended December 31, 2023 and 2022 are as follows:

 

 

    Carrying amount as of December 31, 2022     Software Development Additions Adjustments   Amortization Expense Carrying amount as of December 31, 2023  
GeniusU software platform   $ 2,470,878     $ 438,228           —     $ — -     $ 2,909,106  
Trade names, trademarks and domain names     6,932,945       —           700,000       —         7,632,945  
Film Library     -       -           4,600,000       (676,470 )       3,923,530  
Customer List     —       —           4,200,000       (1,050,000 )       3,150,000  
Customer Relationship     8,642,168       —           (8,624,000 )     127,141         145,309  
Accumulated amortization     (1,938,698 )     —           -       (571,441 )       (2,510,139 )
Net carrying value   $ 16,107,293     $ 438,228           876,000     $ (2,170,770 )     $ 15,250,751  

 

 

    Balance     Software Development Additions     Acquisition of Intangibles     Amortization Expense     Impairment     Foreign Currency Translation     Balance  
    Carrying amount
as of December 31, 2021		     Software Development Additions     Acquisition of Intangibles     Amortization Expense       Impairment     Foreign Currency Translation     Carrying amount
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  

 

During the years ended December 31, 2023 and 2022, the Company recorded amortization of intangible assets in the amount of $2,170,770 and $830,769 respectively. During the year ended December 31, 2023, the Company impaired nil (2022: $1.1 million) of developed software at GeniusU.

 

Annual estimated total amortization expense is $1.97 million, $1.89 million, $1.76 million for 2024 through 2026 and $4.37 million thereafter.