Note 7 - Intangible Assets, net

The Company acquired a customer relationship with a fair value of $50,000 on August 31, 2011, as part of its acquisition of Diamond Bar. Concurrently with its acquisition of Diamond Bar, the Company entered into a trademark purchase and assignment agreement for all rights, title and interest in two trademarks (Diamond Sofa and Diamond Furniture) for $200,000 paid in full at the closing. Amortization of said customer relationship and the trademarks is provided using the straight-line method and estimated lives were 5 years each.

The Company acquired a customer relationship with a fair value of $6,100,559 on April 24, 2013, as part of its acquisition of Bright Swallow. Amortization of said customer relationship is provided using the straight-line method and its estimated life was 15 years.

Intangible assets consisted of the following as of December 31, 2019 and 2018:

	2019			2018

Customer relationship	$	50,000		$	50,000
Trademarks		200,000			200,000
Less: accumulated amortization		(250,000	)		(250,000	)
	$	-		$	-

Amortization of intangible assets from continuing operations was $0 for the years ended December 31, 2019 and 2018. Amortization of intangible assets from discontinued operations was $406,704 and $406,704 for the years ended December 31, 2019 and 2018, respectively.

Impairment on intangible assets from continuing operations was $0 for the years ended December 31, 2019 and 2018. The Company recorded impairment on its intangible assets from its discontinued operations $3,389,200 and $0 for the years ended December 31, 2019 and 2018, respectively. During the year ended December 31, 2019, as a result of lower-than-expected revenue performance of Bright Swallow, management determined the carrying amount of customer relationship was no longer recoverable. The unamortized customer relationship of $3,389,200 was fully impaired. The impairment of customer relationship was not deductible for income tax purposes and, therefore, the Company did not record a corresponding tax benefit in 2019.