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Note 8 - Intangible Assets

12 Months Ended

Dec. 31, 2020

Intangible Assets Disclosure [Text Block]

NOTE 8.

INTANGIBLE ASSETS

Intangible assets consist of the following:

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

Customer relationships	$	46,740,483	$	(20,558,751	)	$	26,181,732	$	37,743,900	$	(17,890,487	)	$	19,853,413
Permits, licenses, and lease acquisition costs		11,053,673		(2,412,313	)		8,641,360		10,305,521		(1,443,337	)		8,862,184
Site location		849,347		(193,462	)		655,885		849,347		(136,839	)		712,508
Noncompetition agreements		626,000		(386,934	)		239,066		626,000		(269,318	)		356,682
Technology		1,128,000		(212,250	)		915,750		138,000		(138,000	)		-
Trade names and trademarks		3,602,202		(369,175	)		3,233,027		722,200		(267,900	)		454,300
Nonsolicitation agreement		28,000		(28,000	)		-		28,000		(28,000	)		-
Easements		4,507,089		-			4,507,089		2,032,494		-			2,032,494

Total	$	68,534,794	$	(24,160,885	)	$	44,373,909	$	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. As of October 1, 2019, we extended the amortization period to 10 years to better reflect the estimated economic lives of our billboard customers. This change in accounting estimate decreased amortization expense and decreased the net loss by $2,124,125, or $0.09 per basic and diluted share, in the fourth quarter of 2019.

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

December 31,

2021

2022

2023

2024

2025

Thereafter

Total

Customer relationships
$ 3,132,966 $ 3,132,966 $ 3,132,966 $ 3,132,966 $ 3,132,966 $ 10,516,902 $ 26,181,732

Permits, licenses and lease acquisition costs
1,012,947 1,012,947 1,012,947 1,012,947 999,939 3,589,633 8,641,360

Site location
56,623 56,623 56,623 56,623 56,623 372,770 655,885

Noncompetition agreements
101,200 90,366 46,100 1,400 - - 239,066

Technology 99,000 99,000 99,000 99,000 99,000 420,750 915,750

Trade names and trademarks
208,900 208,900 208,900 208,900 208,900 2,188,527 3,233,027

Total
$ 4,611,636 $ 4,600,802 $ 4,556,536 $ 4,511,836 $ 4,497,428 $ 17,088,582 $ 39,866,820

Amortization expense for the years ended December 31, 2020 and 2019 was $3,987,003 and $10,471,973, respectively.

Future Amortization

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

Customer relationships
100

Permits, licenses, and lease acquisition costs
102

Site location
139

Noncompetition agreements
26

Technology 111

Trade names and trademarks
186