Intangible assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

11. Intangible assets

In February 2016, the Company purchased a 51% ownership interest in Aerex Industries, Inc. The purchase transaction identified certain intangible assets with a fair value of $5,900,000 and useful lives as follows: Non-Compete (5 years), Trade name (15 years), Certifications/programs (3 years), Customer backlog (1 year), and Customer relationships (4 years). The costs and accumulated amortization for these assets as of December 31, 2018 and 2017 were as follows:

	December 31,
	2018			2017
Cost
Non-compete agreement	$	400,000		$	400,000
Trade name		1,400,000			1,400,000
Certifications/programs		2,000,000			2,000,000
Customer backlog		100,000			100,000
Customer relationships		2,000,000			2,000,000
		5,900,000			5,900,000
Accumulated amortization
Non-compete agreement		(233,333	)		(153,333	)
Trade name		(272,222	)		(178,889	)
Certifications/programs		(1,944,444	)		(1,277,778	)
Customer backlog		(100,000	)		(100,000	)
Customer relationships		(1,458,334	)		(958,333	)
		(4,008,333	)		(2,668,333	)
Intangible assets, net	$	1,891,667		$	3,231,667

Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:

2019	$	728,889
2020		215,000
2021		100,000
2022		93,333
2023		93,333
Thereafter		661,112
	$	1,891,667

Amortization expense was $1,340,000 and $1,363,850 for the years ended December 31, 2018 and 2017, respectively.