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Goodwill and Intangibles

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES

Goodwill consists of approximately $10,419,000 resulting from the excess of the consideration paid and the fair value of net tangible and intangible assets acquired from the Func Food Acquisition (see Note 10). As detailed in Note 10 goodwill increased by $395,000. There was no further activity related to goodwill during the six months ended June 30, 2020.

Intangible assets consist of acquired customer relationships and brands from the Func Food Acquisition. The gross carrying amount and accumulated amortization of intangible assets were as follows as of June 30, 2020 and December 31, 2019:

	June 30,			December 31,
	2020			2019
Intangible assets subject to amortization
Customer relationships gross carrying amount	$	14,006,244		$	14,006,244
Less: accumulated amortization		(284,030	)		-
Total	$	13,722,214		$	14,006,244

Intangible assets not subject to amortization
Brands total carrying amount	$	3,166,756		$	3,166,756
Total Intangibles	$	16,888,970		$	17,173,000

Customer relationships are amortized over an estimated useful life of 25 years and brands have an indefinite life. Amortization expense for the six months ended June 30, 2020 was $284,030. There was no amortization expense related to intangible assets for the six months ended June 30, 2019.

Other fluctuations in the amounts of intangible assets are due to currency translation adjustments.

The following is the future estimated amortization expense related to customer relationships:

As of June 30, 2020:
2020	$	280,189
2021		560,378
2022		560,378
2023		560,378
2024		560,378
Thereafter		11,200,513
	$	13,722,214