Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5 INTANGIBLE ASSETS

 

Intangible assets consist of proprietary developed software, intellectual property, customer lists and acquired contracts carried at cost less accumulated amortization and customer lists acquired at fair value less accumulated amortization. Amortization is computed using the straight-line method over the estimated useful lives.

 

On January 19, 2022, SWK acquired the customer list of NEO3, LLC (“NEO3”) pursuant to an Asset Purchase Agreement for the customer list for $150,000 cash and the issuance of a promissory note in the aggregate principal amount of $75,000 (the “NEO3 Note”). The NEO3 Note is due in 36 months from the closing date and bears interest at a rate of two percent (2.0%) per annum. Monthly payments including interest are $2,148. The purchase price has been allocated to customer list with an estimated life of seven years.

 

The components of intangible assets are as follows:

 

   

March 31, 2022

   

December 31, 2021

   

Estimated

Useful Lives

 

Proprietary developed software

  $ 390,082     $ 390,082     5 –7  

Intellectual property, customer list, and acquired contracts

    7,871,283       6,237,612     5 –15  

Total intangible assets

    8,261,365       6,627,694        

Less: accumulated amortization

    (3,325,917

)

    (3,135,460

)

     
    $ 4,935,448     $ 3,492,234        

 

Amortization expense related to the above intangible assets was $190,457 and $120,237 for the three months ended March 31, 2022 and 2021, respectively.

 

The Company expects future amortization expense to be the following:

 

   

Amortization

 

Remainder of 2022

  $ 543,480  

2023

    672,890  

2024

    672,890  

2025

    666,033  

2026

    651,451  

2027

    637,802  

Thereafter

    1,090,902  
         

Total

  $ 4,935,448