6 INTANGIBLE ASSETS
| December 31, 2017 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| Opening |
|
| Closing | Opening | Amortization | Closing |
|
|
| cost |
|
| cost | accumulated | during the | amortization | Net book |
|
| balance | Additions | Disposals | balance | amortization | period | balance | value |
| Software platform |
$ 3,147,753 |
$ 1,351,597 | $ - |
$ 4,499,350 |
$ 826,496 |
$ 780,335 |
$ 1,606,831 |
$ 2,892,519 |
| Intellectual property | 2,495,000 | - | - | 2,495,000 | 802,333 | 499,000 | 1,301,333 | 1,193,667 |
| Customer relationships | 1,195,000 | - | - | 1,195,000 | 394,004 | 239,004 | 633,008 | 561,992 |
| Music label contracts | 980,000 | - | - | 980,000 | 310,333 | 196,000 | 506,333 | 473,667 |
|
| $ 7,817,753 | $ 1,351,597 | $ - | $ 9,169,350 | $ 2,333,166 | $ 1,714,339 | $ 4,047,505 | $ 5,121,845 |
|
December 31, 2016 | ||||||||
|
|
|
|
|
|
|
|
|
|
|
| Opening |
|
| Closing | Opening | Amortization | Closing |
|
|
| cost |
|
| cost | accumulated | during the | amortization | Net book |
|
| balance | Additions | Disposals | balance | amortization | period | balance | value |
| Software platform |
$ 1,507,982 |
$ 1,639,771 | $ - |
$ 3,147,753 |
$ 287,557 |
$ 538,939 |
$ 826,496 | $ 2,321,257 |
| Intellectual property | 2,495,000 | $ - | - | 2,495,000 | 303,333 | 499,000 | 802,333 | 1,692,667 |
| Customer relationships | 1,195,000 | - | - | 1,195,000 | 155,000 | 239,004 | 394,004 | 800,996 |
| Music label contracts | 980,000 | - | - | 980,000 | 114,333 | 196,000 | 310,333 | 669,667 |
|
| $ 6,177,982 | $ 1,639,771 | $ - | $ 7,817,753 | $ 860,223 | $ 1,472,943 | $ 2,333,166 | $ 5,484,587 |
The Company's credit facility (Note 13) is secured by the Company's intellectual property, which consists of all recognized and unrecognized intangible assets. At December 31, 2017, the net book value of the Company's intangible assets was $5,121,845.