6. GOODWILL AND INTANGIBLE ASSETS (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Goodwill and Intangible Assets Disclosure [Abstract] |
|
| Schedule of goodwill |
Goodwill
activity for the years ended December 31, 2017 and 2016 was as follows:
| Balance - December 31, 2015 |
|
$ |
4,643,812 |
|
| Impairment
of PhytoSPHERE goodwill |
|
|
(1,855,512 |
) |
| Balance - December 31, 2016 |
|
|
2,788,300 |
|
| |
|
|
|
|
| Balance - December
31, 2017 |
|
$ |
2,788,300 |
|
|
| Schedule of intangible activity |
| |
|
Vendor
Relationships |
|
|
In-Process
Research and Development |
|
|
Trade
Names |
|
|
Non-compete
Agreements |
|
|
Total |
|
| Balance - December 31, 2015 |
|
$ |
1,170,000 |
|
|
$ |
3,730,000 |
|
|
$ |
330,000 |
|
|
$ |
2,787,000 |
|
|
$ |
8,017,000 |
|
| Impairment of PhytoSPHERE
intangible assets |
|
|
(1,170,000 |
) |
|
|
– |
|
|
|
(230,000 |
) |
|
|
(2,710,000 |
) |
|
|
(4,110,000 |
) |
| Balance - December 31, 2016 |
|
|
– |
|
|
|
3,730,000 |
|
|
|
100,000 |
|
|
|
77,000 |
|
|
|
3,907,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance - December 31, 2017 |
|
$ |
– |
|
|
$ |
3,730,000 |
|
|
$ |
100,000 |
|
|
$ |
77,000 |
|
|
$ |
3,907,000 |
|
|
| Schedule of intangible assets |
| |
|
Original Fair Market
Value |
|
|
Accumulated Amortization |
|
|
Net |
|
|
Useful Life (Years) |
|
| Balance - December 31, 2017: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In-process research and development |
|
|
3,730,000 |
|
|
|
– |
|
|
|
3,730,000 |
|
|
|
– |
|
| Trade names |
|
|
100,000 |
|
|
|
40,000 |
|
|
|
60,000 |
|
|
|
5 |
|
| Non-compete agreements |
|
|
77,000 |
|
|
|
30,800 |
|
|
|
46,200 |
|
|
|
5 |
|
| |
|
$ |
3,907,000 |
|
|
$ |
70,800 |
|
|
$ |
3,836,200 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance - December 31, 2016: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| In-process research and development |
|
$ |
3,730,000 |
|
|
$ |
– |
|
|
$ |
3,730,000 |
|
|
|
– |
|
| Trade names |
|
|
100,000 |
|
|
|
20,000 |
|
|
|
80,000 |
|
|
|
5 |
|
| Non-compete agreements |
|
|
77,000 |
|
|
|
15,400 |
|
|
|
61,600 |
|
|
|
5 |
|
| |
|
$ |
3,907,000 |
|
|
$ |
35,400 |
|
|
$ |
3,871,600 |
|
|
|
|
|
|
| Schedule of future amortization expense |
Based
on identified intangible assets that are subject to amortization as of December 31, 2017, we expect future amortization expense
to be as follows for the years ending December 31:
| |
2018 |
|
|
$ |
35,400 |
|
| |
2019 |
|
|
|
35,400 |
|
| |
2020 |
|
|
|
35,400 |
|
| |
|
|
|
$ |
106,200 |
|
|