5. IDENTIFIED INTANGIBLE ASSETS

A schedule of identified intangible assets is as follows:


		Gross		Accumulated		Carrying
December 31, 2017		Amount		Amortization		Amount
Trademarks
Wholesale	$	27,192,281	$		$	27,192,281
Retail		2,900,000				2,900,000
Patents		895,477		673,009		222,468
Customer Relationships		-		-		-
Total Intangibles	$	30,987,758	$	673,009	$	30,314,749

		Gross		Accumulated		Carrying
December 31, 2016		Amount		Amortization		Amount
Trademarks
Wholesale	$	29,343,578	$	-	$	29,343,578
Retail		2,900,000		-		2,900,000
Patents		2,595,477		2,376,694		218,783
Customer Relationships		2,200,000		1,246,667		953,333
Total Intangibles	$	37,039,055	$	3,623,361	$	33,415,694

The weighted average life for our patents is 4.3 years.

A schedule of approximate amortization expense related to finite-lived intangible assets is as follows:


		Amortization
		Expense
2017	$	121,000
2016		132,000
2015		135,000

A schedule of approximate future expected amortization expense related to finite-lived intangible assets is as follows:


		Amortization
		Expense
2018	$	41,000
2019		33,000
2020		31,000
2021		26,000
2022		22,000
2023+		69,000

During the fourth quarter of 2017 the Creative Recreation brand was sold. Included in the sale were $2.1 million of trademarks and $880,000 of customer relationships. See Note 19 for more information regarding the sale of Creative Recreation.

Intangible assets, including trademarks and patents are reviewed for impairment annually, and more frequently, if necessary. We perform such testing of indefinite-lived intangible assets in the fourth quarter of each year or as events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Fair value of other indefinite-lived intangible assets is determined using the relief from royalty method.

In assessing whether indefinite-lived intangible assets are impaired, we must make certain estimates and assumptions regarding future cash flows, long-term growth rates of our business, operating margins, weighted average cost of capital and other factors such as; discount rates, royalty rates, cost of capital, and market multiples to determine the fair value of our assets. These estimates and assumptions require management’s judgment, and changes to these estimates and assumptions could materially affect the determination of fair value and/or impairment for each of our indefinite-lived intangible assets. Future events could cause us to conclude that indications of intangible asset impairment exist. Impairment may result from, among other things, deterioration in the performance of our business, adverse market conditions, adverse changes in applicable laws and regulations, competition, or the sale or disposition of a reporting segment. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations.

2017 Impairment Testing

We evaluate our finite and indefinite lived trademarks under the terms and provisions of the accounting standards for “Intangibles - Goodwill and Other”; and “Property, Plant and Equipment.” These pronouncements require that we compare the fair value of an intangible asset with its carrying amount. The results of our 2017 indefinite-lived intangible impairment testing indicated that all reporting unit intangible asset fair values exceed their respective carrying values.

2016 Impairment Testing

The results of our 2016 indefinite-lived intangible impairment testing of the Creative Recreation trademark indicated a carrying value in excess of the fair value based on the Company’s outlook for future operating results. Accordingly, we recorded a $3,000,000 non-cash impairment charge for the Creative Recreation trademark in the fourth quarter of 2016. The carrying value of the Creative Recreation trademark indefinite-lived intangible assets was $2.1 million, as of December 31, 2016. The fair value of intangible assets at each of the remaining reporting units exceed their respective carrying amounts as of December 31, 2016.

2015 Impairment Testing

The results of our 2015 indefinite-lived intangible impairment testing indicated that all reporting unit intangible asset fair values exceed their respective carrying values.