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Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

6. INTANGIBLE ASSETS

On May 1, 2020, the Company launched CCM v3.0, an on-line shopping mall platform, which creates a new value cycle system of online shopping malls with a real-name blockchain system. After the launch of CCM v3.0, the Company reclassified this asset, which the Company prepaid to the software developer in fiscal year 2019, into intangible assets in the second quarter of 2020, which will be amortized over 10 years.

Also included in the intangible assets is accounting software. The accounting software will be amortized over 10 years. The amortization expense was $0.19 million and $0.59 million for the nine months ended September 30, 2020.

The following table sets intangible assets of the Company as of September 30, 2020 and December 31, 2019, respectively.

	CCM						Accounting Software
	September 30,			December 31,			September 30,			December 31,
	2020			2019			2020			2019
Cost	$	1,952,982		$	43,004		$	1,292		$	-
Less: Accumulated amortization		(85,046	)		(2,114	)		(43	)		-
Balance as of September 30, 2020	$	1,867,936			40,890		$	1,249		$	-

The following table summarizes the expected amortization expense for the following years (in thousands):

	Amortization
Year ending December 31,	to be recognized
2020 (excluding the nine months ended September 30, 2020)	$	79
2021		315
2022		315
2023		315
2024		315
2025 and thereafter		530
Total	$	1,869