Note 9. Goodwill and Intangible Assets

Goodwill

The following table summarizes changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018:


Balance as of January 1, 2018	$	—
Acquisitions		704,884
Balance as of December 31, 2018		704,884
Acquisitions		22,639,415
Balance as of December 31, 2019	$	23,344,299

Intangible Assets

The following table summarizes information regarding amortizing and indefinite lived intangible assets:


			December 31, 2019								December 31, 2018
	Weight
	Average		Gross								Gross
	Remaining		Carrying		Accumulated		Impairment		Net		Carrying		Accumulated		Impairment		Net
	Useful Life		Amount		Amortization		Loss		Balance		Amount		Amortization		Loss		Balance
Amortizing Intangible Assets
Animation Copyright		—	$	—		—		—		—		301,495		(64,606)		—		236,889
Software and licenses		—		97,308		(97,308)		—		—		97,308		(93,251)		—		4,057
Solid Opinion IP (a)		4.2		4,655,000		(775,833)		—		3,879,167		—		—		—		—
Fintalk intangible assets (b)		—		6,350,000		(635,000)		(5,715,000)		—		—		—		—		—
Influencer network (c)		8.7		1,980,000		(264,000)		—		1,716,000		1,980,000		(66,000)		—		1,914,000
Customer contract (c)		1.7		500,000		(222,222)		—		277,778		500,000		(55,556)		—		444,444
Continuing membership agreement (d)		19.5		8,255,440		(206,386)		—		8,049,054		—		—		—		—
Customer list		2.5		58,830		(9,805)		—		49,025		—		—		—		—
Trade name (c)		13.7		110,000		(9,778)		—		100,222		110,000		(2,444)		—		107,556
Technology platform (c)		5.7		290,000		(55,238)		—		234,762		290,000		(13,808)		—		276,192
Land use rights (e)		99		27,078,944		—		—		27,078,944		—		—		—		—
Marketing and distribution agreement (e)		5		11,332,473		—		—		11,332,473		—		—		—		—
Total				60,707,995		(2,275,570)		(5,715,000)		52,717,425		3,278,803		(295,665)		—		2,983,138
Indefinite lived intangible assets
Website name (f)				159,504		—		(134,290)		25,214		159,504		—		(134,290)		25,214
Patent				28,000		—		—		28,000		28,000		—		—		28,000
GTB (g)				61,124,407		—		(61,124,407)		—		—		—		—		—
Total			$	122,019,906	$	(2,275,570)	$	(66,973,697)	$	52,770,639	$	3,466,307	$	(295,665)	$	(134,290)	$	3,036,352

During the first quarter of 2019, the Company completed the acquisition of certain assets from SolidOpinion in exchange for 4.5 million shares of the Company’s common stock with a fair value of $7.2 million. The assets acquired included cash of $2.5 million and intellectual property (“IP”) which is complementary to the IP of Grapevine. The parties agreed that 0.5 million of such shares of common stock (“Escrow Shares”) will be held in escrow until February 19, 2020 in connection with SolidOpinion’s indemnity obligations pursuant to the agreement. SolidOpinion has the rights to vote and receive the dividends paid with respect to the Escrow Shares. The Escrow Shares were scheduled to be released on February 19, 2020, and the Company has commenced the necessary steps to release the shares from escrow.

In September 2018, the Company entered into an agreement to purchase Fintalk Assets from Sun Seven Star International Limited, a Hong Kong company and an affiliate of Dr. Wu. FinTalk Assets include the rights, titles and interest in a secure mobile financial information, social, and messaging platform that has been designed for streamlining financial-based communication for professional and retail users. The initial purchase price for the Fintalk Assets was $7.0 million payable with $1.0 million in cash and shares of the Company’s common stock with a fair market value of $6.0 million. The Company paid $1.0 million in October 2018 and recorded this amount in prepaid expenses as of December 31, 2018 because the transaction had not closed. The purchase price was later amended to $6.4 million, payable with $1.0 million in cash and shares of the Company’s common stock with a value of $5.4 million. The Company issued 2.9 million common shares in June 2019 and completed the transaction. In the fourth quarter of 2019, management determined these assets had no future use and recorded an impairment loss of $5.7 million.

During the third quarter of 2018, the Company completed the acquisition of 65.7% share of Grapevine. Refer to Note 6(b) and 6(d).

During the third quarter of 2019, the Company completed the acquisition of additional shares in DBOT, which increased its ownership to 90.0 %. Intangible assets of $8.3 million were recognized on the date of acquisition. Refer to Note 6(c)

During the fourth quarter of 2019, the Company completed the acquisition of a 51.0% interest in Tree Technologies, a Malaysian company engaged in the EV market. Refer to Note 6(a) for additional information.

The Company recorded an impairment loss for the YOD website in the amount of $0.1 million in the year ended December 31, 2018 since the website was no longer in use.

During the first quarter of 2019, the Company completed the sale of certain intangible assets to GTD, and entered into a service agreement with GTD, a minority shareholder, in exchange for GTB. As a result of these transactions, the Company received 8.3 million GTB. On October 29, 2019, GTB had an unexpected significant decline in quoted price, from $17.00 to $1.84. This decline continued through the fourth quarter of 2019, and on December 31, 2019 the quoted price was $0.23. As a result of this decline in quoted price, and its inability to convert GTB into other digital currencies which were more liquid, or fiat currency, the Company performed an impairment analysis in the fourth quarter of 2019 and recorded an impairment loss of $61.1 million. Refer to Note 15(b) for additional information.

Amortization expense, excluding impairment losses of $66.8 million and $0.1 million mentioned above, relating to intangible assets was $2.1 million and $0.2 million for the years ended December 31, 2019, and 2018, respectively.

The following table summarizes future expected amortization expense:


	Amortization to be
Years ending December 31,		recognized
2020	$	4,316,830
2021		4,261,274
2022		4,140,358
2023		4,130,553
2024 and thereafter		35,868,410
Total	$	52,717,425

The above table assumes that the amortization commences on the Land use rights and Marketing and distribution agreement on January 1, 2020; however, actual amortization may commence at a later date as EV production commences.