Note 8 - Intangible Assets

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE

8

– INTANGIBLE ASSETS

On

September 12, 2016,

the Company executed an agreement to acquire assets, including a patent related to LED Lighting, from Tesla Digital, Inc., a Canadian Corporation, and Stevan (Steve) Pokrajac.

Material consideration given by Company was: (a) Shares of CEN common stock equal to

$5

million upon commencement of public trading (b) The transfer of real properties located at

135

North Rear Road, Lakeshore, Ontario, Canada having a fair value of

$2,161,467

and

1517

-

1525

Ridge Road having a purchase cost (including other related disbursements) to the Company of

$202,666.

The patent intangible remains in escrow in the name of Tesla Digital, Inc. until full settlement of the terms of the agreement. In the interim, CEN has the rights to use the patented technology.

In

March 2018,

the agreement was amended to fix the

$5

million consideration to

one million

shares of CEN common stock.

In addition, the Company will employ Stevan Pokrajak in connection with the development of the acquired technology with compensation equal to

$200,000

per year, commencing with the start of operations.

The Company intends to explore using the patented LED Lighting Technology across manufacturing operations and licensing opportunities across multiple industries such as horticultural, automotive, industrial and commercial lighting. The assets acquired, other than the patent, included certain machinery and raw materials, which were old and non-functioning and accordingly, had

no

fair value.

The intangible assets consists of the following as of

December 31:

	2017			2016
Lighting patent	$	6,797,000		$	6,797,000
Accumulated amortization		(566,417	)		(141,604	)
Net	$	6,230,583		$	6,655,396

As a result of the transaction the land was impaired by

$567,133.

As of

December 31, 2017,

there is

no

impairment expense recognized.

The lighting patent is being amortized straight-line over approximately

16

years. Expected amortization expense is

$424,813

per year through

2031,

with the remaining

$283,201

to be amortized in

2032.