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NOTE 6 - INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
NOTE 6 - INTANGIBLE ASSETS

NOTE 6 - INTANGIBLE ASSETS

 

Patents

 

A Patent on the Internet-Search Mechanism (“IBSM”) has been granted in the United States, South Africa and New Zealand. The patent is currently pending in the following areas: Canada, Australia, European Union, United Kingdom.

 

Patents are reported at cost, less accumulated amortization and accumulated impairment loss. Costs includes expenditure that is directly attributable to the acquisition of the asset. Once a patent is providing economic benefit to the Company, amortization is provided on a straight-line basis on all patents over their expected useful lives of 20 years.

 

Intellectual Property

 

Intellectual Property capitalizes costs of the Company’s qualifying internal research and developments. Intellectual property is amortized over its useful life of 7 years and reported at cost less accumulated amortization and accumulated impairment loss.

 

Trademarks

 

The Company has the following trademarks

 

Name  Type   Class    Status   Territory
Citizens Journalist  Word & Mark   9 & 38    registered   European Union
Citizens Journalist  Word   9 & 38    registered   United Kingdom
BAU Not OK  Word   9 & 38    registered   United Kingdom
Newzmine  Word   9 & 38    registered   United Kingdom
Citizens Journalist  Word & Mark   9, 38, 41 & 42    filed   United States

 

The Company capitalizes trademark costs where the likelihood of acceptance is expected. Each trademark has been determined to have an infinite useful life and is assessed each reporting period for impairment. If there has been a reduction in the value of the trademark or if the trademark is not successfully registered, the asset will be impaired and charged to expense in the period of impairment. Trademark impairment of $0 and $9,171 was recorded during the years ended December 31, 2021 and 2020, respectively.

 

As of December 31, 2021 and 2020, trademarks consisted of the following:

               
   December 31,  December 31,
   2021  2020
Trademarks:         
NewzMineTM  $9,636   $5,461
Citizens Journalist™   23,193    11,869
   $32,829   $17,330

 

 

As of December 31, 2021 and 2020, intangible assets consisted of the following:

                                       
Cost  Patents  Trademarks  Intellectual Property  Capitalized Acquisition Costs  Total
At December 31, 2020  $111,256   $17,330   $2,521,821   $45,745   $2,696,152
Additions   42,180    15,623    365,060    —      422,863
Effects of currency translation   (1,576)   (124)   (24,975)   —      (26,675)
At December 31, 2021  $151,860   $32,829   $2,861,906   $45,745   $3,092,340
                         
Less accumulated amortization                        
At December 31, 2020  $—     $—     $1,113,282   $—     $1,113,282
Amortization expense   —      —      364,041    2,288    366,329
Effects of currency translation   —      —      (14,281)   —      (14,281)
At December 31, 2021  $—     $—     $1,463,042   $2,288   $1,465,330
                         
Net book value                        
At December 31, 2021  $151,860   $32,829   $1,398,864   $43,457   $1,627,010
At December 31, 2020  $111,256   $17,330   $1,408,539   $45,745   $1,582,870

 

 

   Patents  Trademarks  Intellectual Property  Capitalized Acquisition Costs  Total
At December 31, 2019  $75,658   $—     $1,953,837   $—     $2,029,495
Additions   32,649    26,975    491,830    45,745    597,199
Impairment   —      (9,171)   —      —      (9,171)
Effects of currency translation   2,949    (474)   76,154    —      78,629
At December 31, 2020  $111,256   $17,330   $2,521,821   $45,745   $2,696,152
                         
Less accumulated amortization                        
At December 31, 2019  $—     $—     $792,399   $—     $792,399
Depreciation expense   —      —      273,549    —      273,549
Effects of currency translation   —      —      47,334    —      47,334
At December 31, 2020  $—     $—     $1,113,282   $—     $1,113,282
                         
Net book value                        
At December 31, 2020  $111,256   $17,330   $1,408,539   $45,745   $1,582,870
At December 31, 2019  $75,658   $—     $1,161,438   $—     $1,237,096

 

 

During the year ended December 31, 2021 and 2020, the Company purchased $422,863 and $597,199, respectively, in intangible assets, and recorded amortization expense of $366,329 and $273,549 respectively. During the year ended December 31, 2021 and 2020, impairment of $0 and $9,171 was recorded. Based on the carrying value of definite-lived intangible assets as of December 31, 2021, we estimate our amortization expense for the next five years will be as follows:

             
Year Ended December 31,  Patents  Intellectual Property  Capitalized Acquisition Costs  Total
 2022   $7,593   $199,838   $2,288   $209,719 
 2023    7,593    199,838    2,288    209,719 
 2024    7,593    199,838    2,288    209,719 
 2025    7,593    199,838    2,288    209,719 
 2026    7,593    199,838    2,288    209,719 
 Thereafter    113,895    399,674    32,017    545,586 
     $151,860   $1,398,864   $43,457   $1,594,181