NOTE 5 – LONG-LIVED ASSETS

Property and equipment

Property and equipment at December 31, 2019 and 2018 consisted of the following:


	December 31, 2019		December 31, 2018

Equipment	$	4,368,196	$	1,409,237
Downhole oil tools		671,888		700,000
Vehicles		179,867		151,497
Furniture, fixtures and other		47,665		43,430

		5,267,616		2,304,164

Less: accumulated depreciation		(957,703)		(306,155)

	$	4,309,913	$	1,998,009

Depreciation expense for the years ended December 31, 2019 and 2018 was $456,227 and $94,943, respectively.

During the year ended December 31, 2019, the Company recorded an impairment charge of $210,298 associated with the downhole oil tools.

During the year ended December 31, 2019, the Company recorded an impairment charge of $12,300 associated with the land and building in Carthage, Texas recorded in assets held for sale. In October 2019, the Company sold the $30,000 assets held for sale in Carthage, Texas in exchange for settlement of note payable. See Note 8 for details.

Intangible assets

Intangible assets as of December 31, 2019 are related to the acquisition of the RigHands™ assets and the acquisition of tradenames of Momentum Water Transfer Services LLC.

Intangible assets at December 31, 2019 and December 31, 2018 consisted of the following:


	Useful
	Life (yr)		December 31, 2019		December 31, 2018

RigHands (Trademark and Formula)		15	$	150,000	$	150,000
MWTS Tradename		10		190,000		190,000

				340,000		340,000

Less: impairment				(190,000)		—
Less: accumulated amortization				(18,758)		(10,344)

			$	131,242	$	329,656

Amortization expense for the year ended December 31, 2019 and 2018 was $28,997 and $10,344, respectively. Future amortization of the intangible assets for the years ended December 31, 2020, 2021, 2022, 2023, 2024 and beyond are $10,000, $10,000, $10,000, $10,000, $10,000 and $81,242, respectively.

During the year ended December 31, 2019, the Company fully impaired its MWTS Tradename intangible asset of $169,417 related to the acquisition of Momentum Water Transfer Services LLC on December 7, 2018.

Goodwill

During the year ended December 31, 2019, the Company fully impaired its goodwill of $185,751 related to the acquisition of Momentum Water Transfer Services LLC on December 7, 2018.