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Note 7 - Intangible Assets

9 Months Ended

Sep. 30, 2020

Intangible Assets Disclosure [Text Block]

NOTE 7. INTANGIBLE ASSETS

Intangible assets consist of the following:

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

Customer relationships	$	39,321,524	$	(19,926,167	)	$	19,395,357	$	37,743,900	$	(17,890,487	)	$	19,853,413
Permits, licenses, and lease acquisition costs		10,720,023		(2,166,042	)		8,553,981		10,305,521		(1,443,337	)		8,862,184
Site location		849,347		(179,229	)		670,118		849,347		(136,839	)		712,508
Noncompetition agreements		626,000		(358,981	)		267,019		626,000		(269,318	)		356,682
Technology		1,128,000		(187,410	)		940,590		138,000		(138,000	)		-
Trade names and trademarks		1,692,200		(340,693	)		1,351,507		722,200		(267,900	)		454,300
Nonsolicitation agreement		28,000		(28,000	)		-		28,000		(28,000	)		-
Easements		4,240,002		-			4,240,002		2,032,494		-			2,032,494

Total	$	58,605,096	$	(23,186,522	)	$	35,418,574	$	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:

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

Customer relationships	$	2,439,725	$	2,408,935	$	2,408,935	$	2,408,935	$	2,408,935	$	7,319,892	$	19,395,357
Permits, licenses, and lease acquisition costs		986,582		986,582		986,582		986,582		979,913		3,627,740		8,553,981
Site location		56,623		56,623		56,623		56,623		56,623		387,003		670,118
Noncompetition agreements		104,971		95,206		64,839		2,003		-		-		267,019
Technology		99,000		99,000		99,000		99,000		99,000		445,590		940,590
Trade names and trademarks		113,400		113,400		113,400		113,400		113,400		784,507		1,351,507

Total	$	3,800,301	$	3,759,746	$	3,729,379	$	3,666,543	$	3,657,871	$	12,564,732	$	31,178,572

Amortization expense for the nine months ended September 30, 2020 and 2019 was $3,012,641 and $9,361,736, respectively.

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

Customer relationships
84

Permits, licenses, and lease acquisition costs
105

Site location
142

Noncompetition agreements
29

Technology 114

Trade names and trademarks
143