Intangible Assets and Impairment of Long-Lived Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND IMPAIRMENT OF LONG-LIVED ASSETS

NOTE 5 - INTANGIBLE ASSETS AND IMPAIRMENT OF LONG-LIVED ASSETS

Intangible assets consist of the following as of December 31, 2022 and 2021:

	Remaining Amortization Period	As of December 31, 2022							As of December 31, 2021
	in Years at December 31, 2022	Gross Asset Value		Accumulated Amortization			Net Carrying Value		Gross Asset Value		Accumulated Amortization			Net Carrying Value
Licensed patents	13.5	$	596,259	$	(142,654	)	$	453,605	$	603,919	$	(110,759	)	$	493,160
Technology license	16.6		1,485,159		(279,906	)		1,205,253		1,658,550		(202,797	)		1,455,753
		$	2,081,418	$	(422,560	)	$	1,658,858	$	2,262,469	$	(313,556	)	$	1,948,913

Changes in the gross asset value of licensed patents and technology licenses from the dates acquired are the result of changes in the foreign currency exchange rate.

The Company recorded amortization expense of $109,004 and $116,297 during the years ended December 31, 2022 and 2021, respectively, related to intangible assets, which is included in general and administrative expense on the accompanying consolidated statements of operations and comprehensive loss.

Future amortization related to intangible assets is as follows:

For the Years Ending December 31,
2023	$	109,489
2024		109,489
2025		109,489
2026		109,489
2027		109,489
Thereafter		1,111,413
	$	1,658,858

Goodwill Impairment

The Company’s publicly traded stock closed at $78.00 per share as of December 31, 2021; during 2022, the market value of the Company’s single reporting unit significantly declined. As of March 31, 2022, June 30, 2022, September 30, 2022 and December 31, 2022, the market value of the Company’s publicly traded stock fell to $51.80, $16.96, $13.30 and $3.39, per share, respectively, and as such, the Company elected to conduct a quantitative analysis of goodwill to assess for impairment as of September 30, 2022 and December 31, 2022. The Company determined the fair market value of its single reporting unit and compared that value with the carrying amount of the reporting unit and determined that goodwill was impaired as of both measurement dates. As of September 30, 2022 and December 31, 2022, the carrying value exceeded the fair market value by $18,872,850 and $14,674,428, respectively. To recognize the impairment of goodwill, the Company recorded losses for these amounts at the end of the third and fourth quarters, which appear as a loss on goodwill impairment of $33,547,278 on the income statement for the year ended December 31, 2022.

The following is a summary of goodwill activity for the year ended December 31, 2022 for the Company’s single reporting unit, which includes the recorded losses on goodwill impairment described above.

	CBR Pharma Goodwill			180 LP Goodwill			Consolidated Goodwill
Balance, December 31, 2021	$	23,749,631		$	13,238,255		$	36,987,886
Currency translation		(664,353	)		-			(664,353	)
Balance, March 31, 2022		23,085,278			13,238,255			36,323,533
Currency translation		(1,734,582	)		-			(1,734,582	)
Balance, June 30, 2022		21,350,696			13,238,255			34,588,951
Currency translation		(1,750,386	)		-			(1,750,386	)
Balance before impairment		19,600,310			13,238,255			32,838,565
Impairment of goodwill		(11,264,612	)		(7,608,238	)		(18,872,850	)
Balance, September 30, 2022		8,335,698			5,630,017			13,965,715
Currency translation		708,713			-			708,713
Balance before impairment		9,044,411			5,630,017			14,674,428
Impairment of goodwill		(9,044,411	)		(5,630,017	)		(14,674,428	)
Balance, December 31, 2022	$	-		$	-		$	-

IP R&D Assets Impairment

As of December 31, 2022, the carrying amount of the IP R&D assets on the balance sheet was $12,405,084 (which consists of carrying amounts of $1,462,084 and $10,943,000 related to the Company’s CBR Pharma subsidiary and its 180 LP subsidiary, respectively). Per the valuation obtained from a third party as of year-end, the fair market value of the Company’s IP R&D assets was determined to be $9,063,000 (which consists of fair values of $0 and $9,063,000 related to the Company’s CBR Pharma subsidiary and 180 LP subsidiary, respectively). As of this measurement date, the carrying values of the CBR Pharma and 180 LP subsidiaries’ assets exceeded their fair market values by $1,462,084 and $1,880,000, respectively. As such, management determined that the consolidated IP R&D assets were impaired by $3,342,084 and, in order to recognize the impairment, the Company recorded a loss for this amount during the fourth quarter of 2022, which appears as a loss on impairment to IP R&D assets on the income statement. This reduced the IP R&D asset balances of its CBR Pharma subsidiary and its 180 LP subsidiary to zero and $9,063,000, respectively, as of December 31, 2022; the total consolidated IP R&D asset balance is $9,063,000 after impairment.

The following is a summary of IP R&D activity for the year ended December 31, 2022 for the Company, which includes the recorded loss for the IP R&D assets described above.

	CBR Pharma IP R&D Assets			180 LP IP R&D Assets			Consolidated IP R&D Assets
Balance, December 31, 2021	$	1,632,780		$	10,943,000		$	12,575,780
Currency translation		(45,674	)		-			(45,674	)
Balance, March 31, 2022		1,587,106			10,943,000			12,530,106
Currency translation		(119,252	)		-			(119,252	)
Balance, June 30, 2022		1,467,854			10,943,000			12,410,854
Currency translation		(120,338	)		-			(120,338	)
Balance, September 30, 2022		1,347,516			10,943,000			12,290,516
Currency translation		114,568			-			114,568
Balance before impairment		1,462,084			10,943,000			12,405,084
Impairment of IP R&D assets		(1,462,084	)		(1,880,000	)		(3,342,084	)
Balance, December 31, 2022	$	-		$	9,063,000		$	9,063,000