NOTE 3 – INTANGIBLE ASSETS

Intangible assets consist of the following:

During the nine months ended September 30, 2020, the Company acquired third-party data with a cost of $1,500,000 as a means using the data to support the evolution and growth of the Company’s artificial intelligence platform. The Company began recognizing amortization expense during the nine months ended September 30, 2020 over the five-year useful life (which is the period in which is the estimated life of the enhancement), as the product enhancement was available for general release to the Company’s customers under its beta testing  program as well as integration into the Company’s pre-existing platform. During the nine months ended September 30, 2020, the Company paid $855,019 in connection with the purchase of the third-party data. As of September 30, 2020, the Company had a remaining liability in connection with purchase of third-party data of $644,981, which is included within accounts payable – trade on the condensed consolidated balance sheet. Subsequent to September 30, 2020, the Company repaid $445,317 of the remaining liability in connection with the Company’s purchase of the third-party data.

Amortization expense related to intangible assets was $87,500 and $4,167 for the three months ended September 30, 2020 and 2019, respectively, and $225,607 and $4,167 for the nine months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, the Company’s intangible assets had a remaining weighted average amortization period of 4.2 years.

The estimated future amortization expense is as follows: