Annual report pursuant to Section 13 and 15(d)

INTANGIBLE ASSETS AND GOODWILL

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INTANGIBLE ASSETS AND GOODWILL
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL

NOTE 6 – INTANGIBLE ASSETS AND GOODWILL

 

Intangible assets, net consisted of the following as of:

 

        December 31,     December 31,  
    Estimated Life   2018     2017  
                 
Trademarks   3.3 – 4.5 years   $ 260,000     $ 260,000  
Website   3 years     118,755       113,253  
Acquired tradename   10 years     365,000       365,000  
Acquired proprietary design   5 years     80,000       80,000  
Acquired developed technology - website   3 years     117,500       117,500  
Acquired developed technology – Ipad application   3 years     117,500       117,500  
Accumulated amortization         (484,635 )     (249,947 )
Impairment         (460,789 )     —  
        $ 133,331     $ 803,306  

 

        December 31,     December 31,  
    Estimated Life   2018     2017  
                 
Goodwill   indefinite   $ 481,947     $ 481,947  
Impairment         (481,947 )     —  
        $ —     $ 481,947  

 

Future amortization expense related to intangible assets are approximately as follows:

 

      Total  
  2019     $ 62,907  
  2020       37,818  
  2021       12,606  
        $ 113,331  

 

Amortization expense was $234,688 and $222,081 for the years ended December 31, 2018 and 2017 and is classified in general and administrative expenses in the accompanying consolidated Statements of Operations. The reason for the impairment charges of $942,736 and $0 in years ended December 31, 2018 and 2017, respectively, are the result of the Company’s determination that cash flows from CCI may not be realized.