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Note 7 - Intangible Assets

6 Months Ended

Jun. 30, 2020

Intangible Assets Disclosure [Text Block]

NOTE 7. INTANGIBLE ASSETS

Intangible assets consist of the following:

	*June 30, 2020*							*December 31, 2019*
			*Accumulated*							*Accumulated*
	*Cost*		*Amortization*			*Balance*		*Cost*		*Amortization*			*Balance*

Customer relationships	$	39,032,900	$	(19,237,453	)	$	19,795,447	$	37,743,900	$	(17,890,487	)	$	19,853,413
Permits, licenses, and lease acquisition costs		10,698,009		(1,920,156	)		8,777,853		10,305,521		(1,443,337	)		8,862,184
Site location		849,347		(164,996	)		684,351		849,347		(136,839	)		712,508
Noncompetition agreements		626,000		(330,564	)		295,436		626,000		(269,318	)		356,682
Trade names and trademarks		1,692,200		(312,387	)		1,379,813		722,200		(267,900	)		454,300
Technology		1,128,000		(162,570	)		965,430		138,000		(138,000	)		-
Nonsolicitation agreement		28,000		(28,000	)		-		28,000		(28,000	)		-
Easements		3,878,154		-			3,878,154		2,032,494		-			2,032,494

Total	$	57,932,610	$	(22,156,126	)	$	35,776,484	$	52,445,462	$	(20,173,881	)	$	32,271,581

During the fourth quarter of 2019, we updated our analysis of economic lives of customer relationships and extended the amortization period to 10 years to better reflect the estimated economic lives of our billboard customers.

Future Amortization

The future amortization associated with the intangible assets is as follows:

	*June 30,*
	*2021*		*2022*		*2023*		*2024*		*2025*		*Thereafter*		*Total*

Customer relationships	$	2,500,221	$	2,379,935	$	2,379,935	$	2,379,935	$	2,379,935	$	7,775,486	$	19,795,447
Permits, licenses, and lease acquisition costs		984,381		984,381		984,381		984,381		983,602		3,856,727		8,777,853
Site location		56,623		56,623		56,623		56,623		56,623		401,236		684,351
Noncompetition agreements		109,323		96,200		76,442		13,248		223		-		295,436
Technology		99,000		99,000		99,000		99,000		99,000		470,430		965,430
Trade names and trademarks		113,400		113,400		113,400		113,400		113,400		812,813		1,379,813

Total	$	3,862,948	$	3,729,539	$	3,709,781	$	3,646,587	$	3,632,783	$	13,316,692	$	31,898,330

Amortization expense for the six months ended June 30, 2020 and 2019 was $1,980,836 and $5,705,124, respectively.

The weighted average amortization period, in months, for intangible assets is as follows:

Customer relationships
85

Permits, licenses, and lease acquisition costs
108

Site location
145

Noncompetition agreements
28

Technology 117

Trade names and trademarks
110