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GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

9.	GOODWILL AND INTANGIBLES

Goodwill consists of approximately $10,419,321 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 in 2020. There was no other activity related to goodwill during the year ended December 31, 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 December 31, 2020 and December 31, 2019:

	December 31,			December 31,
	2020			2019
*Intangible assets subject to amortization*
Customer relationships gross carrying amount	$	14,050,000		$	14,050,000
Less: accumulated amortization		(582,917	)		-
Total	$	13,467,083		$	14,050,000

*Intangible assets not subject to amortization*
Brands total carrying amount	$	3,123,000		$	3,123,000
Total Intangibles	$	16,590,083		$	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 year ended December 31, 2020 was $582,917. There was no amortization expense related to intangible assets for the year ended December 31, 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 December 31, 2020:

Year ending December 31,
2021	$	562,000
2022		562,000
2023		562,000
2024		562,000
2025		562,000
Thereafter		10,657,083
	$	13,467,083