Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.22.4
Intangible Assets and Goodwill
 6 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

Note 10 — Intangible Assets and Goodwill

 

As of June 30, 2022, intangible assets consisted of the following:

 

   

Estimated

    

Remaining

Weighted Average

    

Gross

        

Net

  
    Useful     Useful     Carrying     Accumulated     Carrying  
    Life     Life     Amount     Amortization     Amount  
Finite lived intangible assets:                                        
Customer relationships     7-15 years       6.2 years     $ 9,470,000     $ 590,271     $ 8,879,729  
Developed technology     7-10 years       5.5 years       65,551,987       7,390,427       58,161,560  
Membership network     7 years       3.2 years       1,740,000       952,857       787,143  
Digital media platform     7 years       5.4 years       1,552,500       360,402       1,192,098  
Influencer network     5 years       4.5 years       2,756,000       275,600       2,480,400  
Total finite lived intangible assets                     81,070,487       9,569,557       71,500,930  
                                         
Indefinite lived intangible assets:                                        
Trademarks and tradenames     Indefinite               3,440,000       -       3,440,000  
Total indefinite lived intangible assets                     3,440,000       -       3,440,000  
Total intangible assets                   $ 84,510,487     $ 9,569,557     $ 74,940,930  

 

As of December 31, 2021, intangible assets consisted of the following:

 

   

Estimated

    

Remaining

Weighted Average

    

Gross

        

Net

  
    Useful     Useful     Carrying     Accumulated     Carrying  
    Life     Life     Amount     Amortization     Amount  
Finite lived intangible assets:                                        
Customer relationships     15 years       11.7 years     $ 670,000     $ 148,889     $ 521,111  
Developed technology     7-10 years       7.0 years       37,251,987       3,458,065       33,793,922  
Membership network     7 years       3.7 years       1,740,000       828,571       911,429  
Digital media platform     7 years       5.9 years       1,552,500       249,509       1,302,991  
Influencer network     5 years       5.0 years       2,756,000       -        2,756,000  
Total finite lived intangible assets                     43,970,487       4,685,034       39,285,453  
                                         
Indefinite lived intangible assets:                                        
Trademarks and tradenames     Indefinite               1,240,000       -       1,240,000  
Total indefinite lived intangible assets                     1,240,000       -       1,240,000  
Total intangible assets                   $ 45,210,487     $ 4,685,034     $ 40,525,453  

 

Amortization expense for the six months ended June 30, 2022 and 2021 was $4,784,521 and $1,016,000, respectively. Amortization expense for the three months ended June 30, 2022 and 2021 was $3,268,451 and $603,270, respectively.

 

The estimated future amortization of intangibles subject to amortization as of June 30, 2022 was as follows:

  

       
    Amount  
2022 (excludes amortization through June 30, 2022)   $ 5,044,043  
2023     10,088,090  
2024     10,038,090  
2025     9,776,661  
2026     9,353,804  
Thereafter     27,200,243  
Total   $ 71,500,930  

 

The changes in the carrying amount of goodwill for the six months ended June 30, 2022, consisted of the following:

    Amount  
Balance, January 1, 2021   $ 5,983,852  
Impairment     (591,729 )
Acquisition of Lomotif Private Limited     116,188,021  
December 31, 2021     121,580,144  
Impairment     (453,449 )
Acquisition of AdRizer     17,039,788  
Balance, June 30, 2022   $ 138,166,483  

 

The Company recorded an impairment charge of $453,449 at June 30, 2022 related to our Pirasta, LLC and Uber Mom, LLC businesses resulting from the Company no longer allocating resources to the businesses.