Note 11 - Intangible Assets, Net

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

11. Intangible assets, net

	As of September 30, 2022 (Unaudited)
Items	Gross Carrying Value		Accumulated Amortization			Impairment			Net Carrying Value
	US$(’000)		US$(’000)			US$(’000)			US$(’000)
Intangible assets subject to amortization:
--10 years life:
Cloud compute software technology		1,307		(907	)		(400	)		-
Licensed products use right		1,200		(341	)		-			859
--5 years life:
Internet Ad tracking system		1,153		(347	)		-			806
Live streaming technology		1,500		(550	)		-			950
--3 years life:
Blockchain Integrated Framework		4,038		(1,010	)		-			3,028
Bo!News application		338		(85	)		-			253
Other computer software		110		(110	)		-			-
Total	$	9,646	$	(3,350	)	$	(400	)	$	5,896

ZW DATA ACTION TECHNOLOGIES INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

	As of December 31, 2021
Items	Gross Carrying Value		Accumulated Amortization			Impairment			Net Carrying Value
	US$(’000)		US$(’000)			US$(’000)			US$(’000)
Intangible assets subject to amortization:
--10 years life:
Cloud compute software technology		1,456		(1,010	)		(446	)		-
Licensed products use right		1,205		(255	)		-			950
--5 years life:
Internet Ad tracking system		1,158		(174	)		-			984
Live streaming technology		1,500		(325	)		-			1,175
--3 years life:
Blockchain Integrated Framework		4,038		-			-			4,038
Bo!News application		376		-			-			376
Other computer software		123		(123	)		-			-
Total	$	9,856	$	(1,887	)	$	(446	)	$	7,523

Amortization expenses for the nine months ended September 30, 2022 and 2021 were approximately US$1.59 million and US$0.44 million, respectively. Amortization expenses for the three months ended September 30, 2022 and 2021 were approximately US$0.53 million and US$0.16 million, respectively.

Based on the adjusted carrying value of the finite-lived intangible assets after the deduction of the impairment losses, which has a weighted average remaining useful life of 3.27 years as of September 30, 2022, and assuming no further subsequent impairment of the underlying intangible assets, the estimated future amortization expenses is  approximately US$0.53 million for the year ending December 31, 2022, approximately US$2.11 million each year for the year ending December 31, 2023 and 2024, approximately US$0.63 million for the year ending December 31, 2025, approximately US$0.18 million for the year ending December 31, 2026, and approximately US$0.12 million for the year ending December 31, 2027.