INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 10 - INTANGIBLE ASSETS

On January 24, 2020 and April 8, 2020, the Company foreclosed on two separate note receivables with RBC Life Sciences, Inc. during which the Company acquired $637,000 of intangible assets as settlement of the amounts owed. These assets are being amortized over their useful lives.

On August 21, 2020, the Company completed its acquisition of Impact BioMedical, (see Note 8) during which the Company, based on valuations performed, acquired $22,260,000 of developed technology assets. These assets were placed in service on January 1, 2021 and will be amortized over a 20-year useful life when placed in service.

On June 18, 2021, AMRE Shelton financed the purchase of a 40,000 square foot, 2.0 story, Class A+ multi-tenant medical office building located on a 13.62-acre site in Shelton, Connecticut. Include in the value of the property is $585,000 of intangible assets with an estimated useful life of 3 years.

On November 4, 2021, AMRE LifeCare acquired three medical facilities located in Fort Worth, Texas, Plano, Texas, and Pittsburgh, Pennsylvania. Include in the value of the property is $15,901,000 of intangible assets with estimated useful lives ranging from 1 to 11 years.

On December 21, 2021, AMRE Winter Haven, LLC. (“AMRE Winter Haven”), a subsidiary of AMRE, acquired a medical facility located in Winter Haven, Florida. Include in the value of the property is $29,000 of intangible assets with an estimated useful life of approximating 5 years.

Intangible assets are comprised of the following:

			2021						2020
	Useful Life		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology assets	20 years		$	22,260,000	$	1,113,000	$	21,147,000	$	22,260,000	$	-	$	22,260,000
Acquired intangibles customer lists, licenses, site/tenant improvements, in-place and favorable or unfavorable leases	1-11 years			19,529,000		2,162,000		17,367,000		1,259,000		330,000		929,000
Acquired intangibles patents and patent rights				500,000		500,000		-		500,000		500,000		-
Patent application costs	Varied	(1)		1,052,000		936,000		116,000		1,178,000		911,000		267,000
			$	43,341,000	$	4,711,000	$	38,630,000	$	25,197,000	$	1,741,000	$	23,456,000

⁽¹⁾ Patent application costs are amortized over their expected useful life which is generally the remaining legal life of the patent. As of December 31, 2021, the weighted average remaining useful life of these assets in service was approximately 3.6 years.

Amounts amortized for the year ended December 31, 2021 and 2020 was approximately $3,279,000 and $374,000, respectively.

Expected amortization for each of the five succeeding fiscal years is as follows:

Year	Amount
2022		8,237,000
2023		2,686,000
2024		2,142,000
2025		2,471,000
2026		2,021,000