Intangibles

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangibles

Note 4 – Intangibles

Intangibles consisted of the following:

Type	June 30, 2022			December 31, 2021			Estimated Useful 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		(2,646,790	)		(2,320,036	)
Intangibles - net	$	3,106,730		$	3,433,484

ECS has been a financial technology 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 June 30, 2022 and 2021 was $163,377 and $163,377, respectively.

Amortization expense for the six months ended June 30, 2022 and 2021 was $326,754 and $365,504, respectively.

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

For the Year Ended December 31, 2022:
2022 (6 months)	$	326,754
2023		653,508
2024		653,508
2025		653,508
2026		653,508
2027		165,944
Total	$	3,106,730