Note 6. INTANGIBLE ASSETS

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the asset’s carrying amount may not be recoverable. The Company conducts its long-lived asset impairment analyses in accordance with ASC 360-10-35-23, “Impairment or Disposal of Long-Lived Assets.” ASC 360-10-35-23 requires that a company recognize an impairment loss if, and only if, the carrying amount of a long-lived asset (asset group) is not recoverable from the sum of the undiscounted cash flows expected to result from the use and eventual disposal of the asset (the “Recoverable Amount”) and if the carrying amount exceeds the asset’s fair value.

As part of management's qualitative analysis at September 30, 2020 to determine whether any triggering events have occurred since the last impairment test in December 30, 2019, which would indicate an impairment. Management determined that triggering events had occurred through the nine month ended September 30, 2020 and recorded an impairment to intangible assets.

The Company determined that the carrying value of intangible assets for the Vitamin Store are not recoverable based on the monthly average sales for the nine months ended September 30, 2020. The Company concluded that the intangible assets was impaired and recorded an impairment charges of $0.4 million for the nine months ended September 30, 2020. The Company did not have an impairment charge for the same period in 2019.

Intangible assets, net are as follows:

September 30, 2020	Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade names		8-10 years	$	923,000	$	(418,068)	$	504,932
Customer relationships		4-10 years		883,000		(420,635)		462,365
Patents		10 years		359,665		(76,650)		283,015
Non-compete		4 years		174,000		(77,938)		96,062
Intangible assets, net			$	2,339,665	$	(993,291)	$	1,346,374

December 31, 2019	Useful Lives (Years)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trade names		8-10 years	$	993,000		(354,203)	$	638,797
Customer relationships		4-10 years		1,228,000		(293,260)		934,740
Patents		10 years		270,250		(49,027)		221,223
Non-compete		4 years		174,000		(45,313)		128,687
Intangible assets, net			$	2,665,250	$	(741,803)	$	1,923,447

Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense amounted to approximately $0.3 million and $0.3 million for the nine months ended September 30, 2020 and 2019, respectively. Future annual estimated amortization expense is as follows:

Years ending December 31,
2020 (remaining three months)	$	98,023
2021		385,091
2022		369,706
2023		130,841
2024		130,841
Thereafter		231,872
Total	$	1,346,374