Note 8 - Goodwill and Acquired Intangible Assets

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE

8

-

GOODWILL AND ACQUIRED INTANGIBLE ASSETS

Goodwill

The changes in HF Group’s carrying amount of goodwill by segment are presented below:

	HF Group		B&R Global		Total
Balance at January 1 and December 31, 2018		-		-		-
B&R Global Acquisition		-		406,703,348		406,703,348
Balance at December 31, 2019 (1)	$	-	$	406,703,348	$	406,703,348

( 1 ) There are no accumulated impairment losses.

Acquired Intangible Assets

In connection with the Business Acquisition, HF Group acquired

$188,503,000

of intangible assets, primarily representing tradenames and customer relationships, which have an estimated weighted-average amortization period of approximately

10

years and

20

years respectively. The components of the intangible assets are as follows:

At December 31,	2019							2018
	Gross Carrying Amount		Accumulated Amortization			Net Carrying amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Tradenames	$	29,303,000	$	(488,383	)		28,814,617	$	-	$	-		-
Customer relationships		159,200,000		(1,326,667	)		157,873,333		-		-
Total	$	188,503,000	$	(1,815,050	)		186,687,950	$	-	$	-		-

HF Group’s amortization expense for intangible assets was

$1,815,050

in

2019

and

nil

in

2018,

respectively. Estimated future amortization expense for intangible assets is presented below:

Twelve months ending December 31,
2020	$	10,890,300
2021		10,890,300
2022		10,890,300
2023		10,890,300
2024		10,890,300
Thereafter		132,236,450
Total	$	186,687,950