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Intangibles Assets

12 Months Ended

Dec. 31, 2020

Note 6 - Intangible Assets

Intangible assets consist of finite and indefinite life assets. Finite life intangible assets include customer and producer relationships and other identifiable intangibles. KICO’s insurance company license is considered an indefinite life intangible asset subject to annual impairment testing. All identified intangible assets of finite useful life were fully amortized as of December 31, 2020 and 2019.

The components of intangible assets and their useful lives, accumulated amortization, and net carrying value as of December 31, 2020 and 2019 are summarized as follows:

			December 31, 2020						December 31, 2019
	Useful		Gross				Net		Gross				Net
	Life		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(in yrs)		Value		Amortization		Amount		Value		Amortization		Amount
Insurance license		-	$	500,000	$	-	$	500,000	$	500,000	$	-	$	500,000
Customer relationships		10		3,400,000		3,400,000		-		3,400,000		3,400,000		-
Other identifiable
intangibles		7		950,000		950,000		-		950,000		950,000		-
Total			$	4,850,000	$	4,350,000	$	500,000	$	4,850,000	$	4,350,000	$	500,000

Intangible asset impairment testing and amortization

The Company performs an analysis annually as of December 31, or sooner if there are indicators that the asset may be impaired, to identify potential impairment of intangible assets and measures the amount of any impairment loss that may need to be recognized. Intangible asset impairment testing requires an evaluation of the estimated fair value of each identified intangible asset to its carrying value. An impairment charge would be recorded if the estimated fair value is less than the carrying amount of the intangible asset. No impairments have been identified for the years ended December 31, 2020 and 2019.

The Company recorded amortization expense related to intangible assets of $-0- and $170,000, for the years ended December 31, 2020 and 2019, respectively.