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

NOTE－6 INTANGIBLE ASSETS

 

As of September 30, 2021 and December 31, 2020, intangible assets consisted of the following:

 

             
   Useful life  September 30, 2021  December 31, 2020
       (Unaudited)      
At cost:             
Software platform  2.5 years  $8,000,000   $8,000,000 
Other intangible assets  3 – 5 years   1,725    1,725 
       8,001,725    8,001,725 
Less: accumulated amortization      (3,201,725)   (801,725)
      $4,800,000   $7,200,000 

 

On November 1 2018, the Company entered software development agreement with CVO Advisors Pte Ltd (CVO) 2018 to design and build App and Web-based platform for the total consideration of $8,000,000. CVO who is a third party vendor in the business of designing, developing, operating computer software applications including mobile and web application for social media, big data, point of sales, loyalty rewards, food delivery and technology platforms in Asia. The CVO developer performed and accepted technical work, of software development phase, which was materially completed by December 23, 2018. The Company obtained a third party license (Wallet Factory International Ltd) for their technology build up by CVO.

 

The delivered platform was further developed by the Company’s in-house technology team (based in Noida that Sopa is currently using for the loyalty platform. The platform can be downloaded from Apple store or Googleplay store (i.e. SoPaApp) and the Company’s web version is on www.sopa.asia. The platform was completed developed on September 30, 2020 and has estimated life of 2.5 years. The platform started to be amortized from October 1, 2020.

 

Further, the Company entered subscription agreement with CVO to issued 8,000 shares of preferred stocks for the software development, equal to the aggregate of $8,000,000 or at the stated value of $1,000 per share.

 

Pursuant to the subscription agreement entered with CVO, the Company issued 8,000 shares of Series A convertible preferred stock for the purchase of software development at the stated value of $1,000 per share, totaling $8,000,000. CVO performed and accepted the technical work such as designing, developing, operating computer software applications including mobile and web application for social media, big data, point of sales, loyalty rewards, food delivery and technology platforms. The holder of this series A provided their consent to waive the warrant provision available with them and accordingly the preferred series A accounted in 2018.

 

Also, owner of CVO entered into call option agreement with the CEO of the Company to sale all the shares of CVO for the sum of $10 per share, as of date, these options were exercised by the CEO of the Company, but the equity holders of CVO Advisors Pte. Ltd. have not honored the exercise of the call. The parties are currently in litigation (refer Note 19). As a result of this option exercise, there was no accounting effect on the Company’s financial statement during the period ended September 30, 2021.

 

Amortization of intangible assets attributable to future periods is as follows:

 

   
Year ending December 31:    Amount
2021 (remaining period)     $ 800,000  
2022       3,200,000  
2023       800,000  
 Total     $ 4,800,000  

 

Amortization of intangible assets was $2,400,000 and $1,479 for the nine months ended September 30, 2021 and 2020, respectively.

 

Amortization of intangible assets was $800,000 and $0 for the three months ended September 30, 2021 and 2020, respectively.