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).

In October 2019, the Company purchased a 51% ownership interest in PERC Water Corporation. The purchase transaction identified certain intangible assets with a fair value of $3,990,000 and useful lives as follows: Non-Compete (3 years), Trade name (15 years), Customer backlog (2 years), and Facility management contracts (6 years).

The costs and accumulated amortization for these assets were as follows:


	December 31,
	2019		2018
Cost
Non-compete agreements	$	530,000	$	400,000
Trade names		2,700,000		1,400,000
Certifications/programs		2,000,000		2,000,000
Customer backlogs		460,000		100,000
Customer relationships		2,000,000		2,000,000
Facility management contracts		2,200,000		—
		9,890,000		5,900,000
Accumulated amortization
Non-compete agreements		(320,556)		(233,333)
Trade names		(380,000)		(272,222)
Certifications/programs		(2,000,000)		(1,944,444)
Customer backlogs		(130,000)		(100,000)
Customer relationships		(1,958,333)		(1,458,334)
Facility management contracts		(61,111)		—
		(4,850,000)		(4,008,333)
Intangible assets, net	$	5,040,000	$	1,891,667

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


2020	$	891,667
2021		746,667
2022		582,778
2023		546,667
2024		546,667
Thereafter		1,725,554
	$	5,040,000

Amortization expense was $841,667 and $1,340,000 for the years ended December 31, 2019 and 2018, respectively.