INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2020

INTANGIBLE ASSETS

6. INTANGIBLE ASSETS

Intangible Assets

As of September 30, 2020

	Useful Life		Cost		Accumulated Amortization		Net Book Value
Service Contracts		5	$	1,012,335	$	506,378	$	505,957

There was approximately $50,638 and $151,913 of amortization expense for the three and nine month period ended September 30, 2020. There was approximately $50,598 and $151,638 of amortization expense for the three and nine month period ended September 30, 2019. Service contracts are amortized based on the future undiscounted cash flows or straight – line basis over estimated remaining useful lives of five years.

Over the next four fiscal years annual amortization expense for these finite life intangible assets will total approximately $505,957 as follows: remainder of fiscal 2020 - $50,638, fiscal 2021 - $202,551, fiscal 2022 - $202,551, fiscal 2023- $50,217.

Long-lived assets, including purchased intangibles subject to amortization, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The Company regularly evaluates whether events and circumstances have occurred that indicate possible impairment and relies on a number of factors, including operating results, business plans, economic projections, and anticipated future cash flows. The Company uses an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether the assets are recoverable. As of September 30, 2020, the Company has not recorded any impairments.