Quarterly report pursuant to Section 13 or 15(d)

Intangibles

v3.21.2
Intangibles
9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles

Note 4 – Intangibles

 

Intangibles consisted of the following:

 

                Estimated Useful
Type   September 30, 2021     December 31, 2020     Lives (Years)
                 
Proprietary Software   $ 4,286,402     $ 4,286,402     7
Tradenames/trademarks     617,474       617,474     15
ECS membership agreement     465,000       465,000     1
Noncompetition agreement     201,389       201,389     2
Customer Relationships     183,255       183,255     5
      5,753,520       5,753,520      
Less: accumulated amortization     (2,156,659 )     (1,627,778 )    
Intangibles - net   $ 3,596,861     $ 4,125,742      

 

ECS has been a financial technology tech and wireless top-up platform for over 15 years. On October 1, 2019, we acquired ECS primarily for the favorable ACH banking relationships and a fintech transactions platform (proprietary software) processing over 20,000 transactions a day at approximately 8,000 independently owned retail stores. The goal was to incorporate our blockchain components into the existing ECS network (proprietary software). After a year of development and integration, we believe the ECS platform has been successfully merged into our platform with secure ledger data backups and will continue to serve as the proven backbone for wireless top-up transactions and wireless product aggregation. The majority of the purchase price was allocated to the “Proprietary Software” category being amortized straight-line over seven years.

 

Amortization expense for the three months ended September 30, 2021 and 2020, was $163,377 and $277,094, respectively.

 

Amortization expense for the nine months ended September 30, 2021 and 2020, was $528,881 and $831,281, respectively.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2021

 

Estimated amortization expense for each of the five (5) succeeding years and thereafter is as follows:

 

For the Year Ended December 31, 2021:

 

      2021  
2021 (3 months)   $ 163,377  
2022   $ 653,508  
2023   $ 653,508  
2024   $ 653,508  
2025   $ 653,508  
Thereafter     819,452  
Total   $ 3,596,861