NOTE

INTANGIBLE ASSETS

The Company had approximately

$5.7

million and

$6.4

million in intangible assets, net of amortization, at

December 31, 2019

and

2018,

respectively. Shown below are the details of the components that represent these balances.

Intangible assets consisted of the following as of

December 31, 2019

	Cost		Accumulated Amortization			Carrying Value		Amortization Life and Method

IP Software	$	2,343,888	$	(2,240,695	)	$	103,193	3 years - straight-line
Portfolios and Client Lists		7,714,665		(5,614,880	)		2,099,785	4 years - straight-line
Client Acquisition Costs		8,238,018		(4,762,347	)		3,475,671	4 years - straight-line
PCI Certification		449,000		(449,000	)		-	3 years - straight-line
Trademarks		703,586		(703,586	)		-	3 years - straight-line
Domain Names		437,810		(437,810	)		-	3 years - straight-line
Total	$	19,886,966	$	(14,208,317	)	$	5,678,649

Intangible assets consisted of the following as of

December 31, 2018

	Cost		Accumulated Amortization			Carrying Value		Amortization Life and Method

IP Software	$	2,309,291	$	(2,139,891	)	$	169,400	3 years - straight-line
Portfolios and Client Lists		7,576,665		(4,333,866	)		3,242,799	4 years - straight-line
Client Acquisition Costs		6,370,124		(3,340,581	)		3,029,544	4 years - straight-line
PCI Certification		449,000		(449,000	)		-	3 years - straight-line
Trademarks		703,586		(703,586	)		-	3 years - straight-line
Domain Names		437,810		(437,810	)		-	3 years - straight-line
Total	$	17,846,476	$	(11,404,732	)	$	6,441,743

During the year ended

December 31, 2018,

we removed fully amortized portfolio and client lists, approximating

$1.4

million, relating to our PayOnline acquisition.

Amortization expense for the intangible assets was approximately

$2.7

million and

$2.1

million for the years ended

December 31, 2019

and

2018,

respectively.

The following table presents the estimated aggregate future amortization expense of intangible assets: