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Long-Lived Assets and Goodwill
 6 Months Ended 12 Months Ended
Jun. 30, 2020
Dec. 31, 2019
Longlived Assets and Good will [Abstract]    
LONG-LIVED ASSETS AND GOODWILL

14. LONG-LIVED ASSETS AND GOODWILL

 

The Company accounts for long-lived assets in accordance with the provisions of ASC 360-10-35, Property, Plant and Equipment, Impairment or Disposal of Long-lived Assets. This accounting standard requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset.

 

The Company accounts for goodwill and intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other. ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. For the six months ended June 30, 2020, the Company recorded no impairments.

 

Investments

 

An investment is considered impaired if the fair value of the investment is less than its cost. Generally, an impairment is considered other-than-temporary unless (1) the Company has the ability and intent to hold an investment for a reasonable period of time sufficient for an anticipated recovery of the fair value up to (or beyond) the cost of the investment; and (2) evidence indicating that the cost of the investment is recoverable within a reasonable period of time outweighs evidence to the contrary. If impairment is determined to be other that temporary, then an impairment loss is recognized equal to the difference between the investment’s cost and fair value.

 

The following table sets forth the changes in the carrying amount of goodwill for the six months ended June 30, 2020:

 

(Amounts in US$’s)  Total 
Balance at December 31, 2019  $56,386,795 
Balance at June 30, 2020  $56,386,795 

 

The following table sets forth the gross carrying amounts and accumulated amortization of the Company’s intangible assets as of June 30, 2020 and December 31, 2019:

 

(Amounts in US$’s)   Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		 
Definite-lived intangible assets:            
Trade names  $5,643,204   $(489,222)  $5,153,982 
Technology   32,800,000    (4,308,333)   28,491,667 
Customer relationships   15,110,792    (2,054,894)   13,055,898 
Intellectual property   3,729,537    (51,799)   3,677,738 
Noncompete   937,249    (39,052)   898,197 
Total definite-lived intangible assets at December 31, 2019  $58,220,782   $(6,943,300)  $51,277,482 
Trade names  $5,643,204   $(892,341)  $4,750,863 
Technology   32,800,000    (7,041,707)   25,758,293 
Customer relationships   15,611,018    (3,599,414)   12,011,604 
Intellectual property   3,729,537    (362,594)   3,366,943 
Noncompete   937,249    (273,364)   663,885 
Total definite-lived intangible assets at June 30, 2020  $58,721,008   $(12,169,420)  $46,551,588 

 

Amortization expense of intangible assets was $2,617,949 and $2,134,768 for the three months ended June 30, 2020 and 2019, respectively, and $5,226,119 and $2,370,996 for the six months ended June 30, 2020 and the period January 10, 2019 (Inception) to June 30, 2019, respectively.

 

As of June 30, 2020, assuming no additional amortizable intangible assets, the expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows:

 

    Estimated  
(Amounts in US$’s)    The remainder
of 2020		     2021     2022     2023     2024  
Amortization expense   $ 5,234,126     $ 10,446,204     $ 10,016,632     $ 10,016,632     $ 7,961,738  

 

   Estimated 
(Amounts in US$’s)   2025   2026 
Amortization expense  $2,559,307   $316,950 

8. GOODWILL AND OTHER INTANGIBLE ASSETS

 

The following table sets forth the changes in the carrying amount of goodwill for fiscal 2019:

 

(Amounts in US$'s)   Total 
Balance at January 10, 2019 (inception)  $— 
Acquisitions   56,386,796 
Balance at December 31, 2019  $56,386,796 

 

The following table sets forth the gross carrying amounts and accumulated amortization of the Company's intangible assets as of December 31, 2019:

 

(Amounts in US$'s)   Gross
Carrying Amount		   Accumulated Amortization   Net
Carrying Amount		 
Definite-lived intangible assets:            
Trade names  $5,643,204   $(489,222)  $5,153,982 
Technology   32,800,000    (4,308,333)   28,491,667 
Customer relationships   15,110,792    (2,054,894)   13,055,898 
Intellectual property   3,729,537    (51,799)   3,677,738 
Noncompete   937,249    (39,052)   898,197 
Total definite-lived intangible assets  $58,220,782   $(6,943,300)  $51,277,482 

 

The following table sets forth the amortization expense (actual and estimated) for intangible assets, assuming no additional amortizable intangible assets, for fiscal 2019 and each of the following five years:

 

   Actual   Estimated 
(Amounts in US$'s)   2019   2020   2021   2022   2023   2024 
Amortization expense  $6,943,300   $10,385,211   $10,346,159   $9,916,587   $9,916,587   $7,861,692