Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS

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INTANGIBLE ASSETS
6 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Note 6. INTANGIBLE ASSETS

As of June 30, 2017 and December 31, 2016, intangible assets consisted of the following:

 

          June 30, 2017     December 31, 2016  
    Estimated Useful Life in Years     Gross
Carrying Amount
    Accumulated Amortization    

Net

Carrying Value

    Gross
Carrying Amount
    Accumulated Amortization    

Net

Carrying
Value

 
                                           
Amortized Intangible Assets:                                          
Customer Relationships   5 to 12     $ 8,960,700     $ (1,218,528 )   $ 7,742,172     $ 8,960,700     $ (780,960 )   $ 8,179,740  
Trade Brands and Patent   2 to 8       498,598       (145,757 )     352,841       498,598       (91,061 )     407,537  
Dispensary License   14       10,270,000       (916,965 )     9,353,035       10,270,000       (550,179 )     9,719,821  
                                                         
Total Amortized Intangible Assets             19,729,298       (2,281,250 )     17,448,048       19,729,298       (1,422,200 )     18,307,098  
                                                         
Unamortized Intangible Assets:                                                        
Trade Name   Indefinite       5,320,000             5,320,000       5,320,000             5,320,000  
                                                         
Total Unamortized Intangible Assets             5,320,000             5,320,000       5,320,000             5,320,000  
                                                         
Total Intangible Assets           $ 25,049,298     $ (2,281,250 )   $ 22,768,048     $ 25,049,298     $ (1,422,200 )   $ 23,627,098  

 

Intangible assets with finite lives are amortized over their estimated useful lives. We recorded amortization expense of $429,525 and $516,878 for the three months ended June 30, 2017 and 2016, respectively, and $859,050 and $527,498 for the six months ended June 30, 2017 and 2016, respectively.