Intangible Assets

3 Months Ended

Mar. 31, 2018

Note 5. INTANGIBLE ASSETS

Intangible assets, net are as follows:

March 31, 2018	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Favorable lease	15 years	$	890,000	$	(106,809	)	$	783,191
Trade names	10 years		820,000		(190,000	)		630,000
Customer relationships	5 years		60,000		(22,000	)		38,000
Technology	10 years		75,000		(8,750	)		66,250
Website	3 years		4,500		(2,750	)		1,750
Intangible assets, net		$	1,849,500	$	(330,309	)	$	1,519,191

December 31, 2017	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Favorable lease	15 years	$	890,000	$	(92,219	)	$	797,781
Trade names	10 years		820,000		(169,500	)		650,500
Customer relationships	5 years		60,000		(19,000	)		41,000
Technology	10 years		75,000		(6,875	)		68,125
Website	3 years		4,500		(2,375	)		2,125
Intangible assets, net		$	1,849,500	$	(289,969	)	$	1,559,531

Intangible assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense amounted to approximately $ 40,000 and $39,000 for the three months ended March 31, 2018 and 2017, respectively. Future annual estimated amortization expense is as follows:

Years ending December 31,
2018 (remaining nine months)	$	121,020
2019		160,486
2020		159,861
2021		152,861
2022		147,861
Thereafter		777,102
Total	$	1,519,191