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Intangibles
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangibles

Note 4 – Intangibles

 

Intangibles consisted of the following:

 

           Estimated Useful
Type  September 30, 2022   December 31, 2021   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   (2,810,167)   (2,320,036)   
Intangibles - net  $2,943,353   $3,433,484    

 

ECS has been a financial technology 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 platform serves as a 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 on a straight-line basis over seven years.

 

Amortization expense for the three months ended September 30, 2022 and 2021 was $163,377 and $163,377, respectively.

 

Amortization expense for the nine months ended September 30, 2022 and 2021 was $490,131 and $528,881, respectively.

 

 

SURGEPAYS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2022

(UNAUDITED)

 

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

 

For the Year Ended December 31, 2022:    
     
2022 (3 months)  $ 163,377 
2023    653,508 
2024    653,508 
2025    653,508 
2026    653,508 
2027    165,944 
Total  $ 2,943,353