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Intangible Assets

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

5. INTANGIBLE ASSETS

On January 23, 2018, DigiPay and Peng Youwang ("Peng"), a Chinese citizen entered into the DCON Agreement. Under the terms of the DCON Agreement, Peng transferred to DigiPay a 60% ownership interest in certain digital assets of DCON, a blockchain platform for cryptocurrency conversion, payment and other services ("DCON"), including but not limited to its business plan and white papers, business models, software, architectures, codes, software, applications, technologies, patents, copyrights, trade secrets, customer lists, business points, trading platforms, digital rights, authentication systems, agreements and contracts, token, and the DCON communities established on Nova Realm City (the "Transfer Assets") for an aggregate purchase price of $9.6 million (the "Purchase Price").

As of December 31, 2018, management has determined that above acquired intangible assets were evaluated at the par value of the common stocks issued, or $1,200. We have assessed the recoverability of such assets as of December 31, 2019 and concluded that no impairment indication was noted.

Also included in the intangible assets is land use right. The government of the PRC, its agencies and collectives hold all land ownership. Companies or individuals are authorized to use the land only through land usage rights granted by the PRC government. Land usage rights can be transferred upon approval by the land administrative authorities of the PRC (State Land Administration Bureau) upon payment of the required land transfer fee. Accordingly, the Company paid in advance for land usage rights. Prepaid land usage rights are being amortized and recorded as lease expenses using the straight-line method over the terms of the leases, which range from 40 to 50 years. The amortization expense was $0.12 million and $6.5 million and for fiscal years 2019 and 2018, respectively. The following table sets forth land usage rights of the Company as of December 31, 2019 and 2018, respectively.

	December 31,
	2019			2018
Cost	$	5,847,008		$	24,003,243
Less: Accumulated amortization		(574,996	)		(2,556,898	)
Less: Impairment Loss		-			(6,895,078	)
	$	5,272,012			14,551,266