| 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:
SCHEDULE OF RECONCILIATION OF INTANGIBLE ASSETS
| |
|
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.
|