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Intangibles
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles

Note 4 – Intangibles

 

Intangibles consisted of the following:

 

           Estimated Useful
Type  September 30, 2021   December 31, 2020   Lives (Years)
            
Proprietary Software  $4,286,402   $4,286,402   7
Tradenames/trademarks   617,474    617,474   15
ECS membership agreement   465,000    465,000   1
Noncompetition agreement   201,389    201,389   2
Customer Relationships   183,255    183,255   5
    5,753,520    5,753,520    
Less: accumulated amortization   (2,156,659)   (1,627,778)   
Intangibles - net  $3,596,861   $4,125,742    

 

ECS has been a financial technology tech and wireless top-up platform for over 15 years. On October 1, 2019, we acquired ECS primarily for the favorable ACH banking relationships and a fintech transactions platform (proprietary software) processing over 20,000 transactions a day at approximately 8,000 independently owned retail stores. The goal was to incorporate our blockchain components into the existing ECS network (proprietary software). After a year of development and integration, we believe the ECS platform has been successfully merged into our platform with secure ledger data backups and will continue to serve as the proven backbone for wireless top-up transactions and wireless product aggregation. The majority of the purchase price was allocated to the “Proprietary Software” category being amortized straight-line over seven years.

 

Amortization expense for the three months ended September 30, 2021 and 2020, was $163,377 and $277,094, respectively.

 

Amortization expense for the nine months ended September 30, 2021 and 2020, was $528,881 and $831,281, respectively.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2021

 

Estimated amortization expense for each of the five (5) succeeding years and thereafter is as follows:

 

For the Year Ended December 31, 2021:

 

    2021 
2021 (3 months)  $163,377 
2022  $653,508 
2023  $653,508 
2024  $653,508 
2025  $653,508 
Thereafter   819,452 
Total  $3,596,861