INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 2019

Intangible assets, net are as follows:

September 30, 2019	Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade names		8-10 years	$	993,000	$	(328,733)	$	664,267
Customer relationships		4-10 years		1,228,000		(230,198)		997,802
Patents		10 years		270,250		(42,271)		227,979
Non-compete		4 years		174,000		(34,438)		139,562
Website		3 years		4,500		(4,500)		-
Intangible assets, net			$	2,669,750	$	(640,140)	$	2,029,610

December 31, 2018	Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Favorable lease		15 years	$	890,000	$	(150,580)	$	739,420
Trade names		8-10 years		993,000		(252,329)		740,671
Customer relationships		4-10 years		1,228,000		(41,010)		1,186,990
Patents		10 years		245,250		(22,940)		222,310
Non-compete		4 years		174,000		(1,812)		172,188
Website		3 years		4,500		(3,875)		625
Intangible assets, net			$	3,534,750	$	(472,546)	$	3,062,204

Future Annual Estimated Amortization Expense

Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense amounted to approximately $318,000 and $122,000 for the nine months ended September 30, 2019 and 2018, respectively. Due to adoption of ASU No. 2016-02 on January 1, 2019, the Company’s favorable lease intangible asset associated with its Ada’s Natural Market location, with a net balance of $739,000 as of December 31, 2018, was reclassified to right-of-use asset in the Ada’s lease amortization schedule to correct the January 1, 2019 opening balance sheet. Future annual estimated amortization expense is as follows:

Years ending December 31,
2019 (remaining three months)	$	106,160
2020		424,650
2021		417,650
2022		402,270
2023		163,400
Thereafter		515,480
Total	$	2,029,610