LONG-LIVED ASSETS
 12 Months Ended
Dec. 31, 2019
LONG-LIVED ASSETS  
LONG-LIVED ASSETS

NOTE 5 – LONG-LIVED ASSETS

Property and equipment

Property and equipment at December 31, 2019 and 2018 consisted of the following:

 

 

 

 

 

 

 

 

 

    

December 31, 2019

    

December 31, 2018

 

 

 

 

 

 

 

Equipment

 

$

4,368,196

 

$

1,409,237

Downhole oil tools

 

 

671,888

 

 

700,000

Vehicles

 

 

179,867

 

 

151,497

Furniture, fixtures and other

 

 

47,665

 

 

43,430

 

 

 

 

 

 

 

 

 

 

5,267,616

 

 

2,304,164

 

 

 

 

 

 

 

Less: accumulated depreciation

 

 

(957,703)

 

 

(306,155)

 

 

 

 

 

 

 

 

 

$

4,309,913

 

$

1,998,009

 

 

Depreciation expense for the years ended December 31, 2019 and 2018 was $456,227 and $94,943, respectively.

During the year ended December 31, 2019, the Company recorded an impairment charge of $210,298 associated with the downhole oil tools.

During the year ended December 31, 2019, the Company recorded an impairment charge of $12,300 associated with the land and building in Carthage, Texas recorded in assets held for sale. In October 2019, the Company sold the $30,000 assets held for sale in Carthage, Texas in exchange for settlement of note payable. See Note 8 for details.

Intangible assets

Intangible assets as of December 31, 2019 are related to the acquisition of the RigHands™ assets and the acquisition of tradenames of Momentum Water Transfer Services LLC.

Intangible assets at December 31, 2019 and December 31, 2018 consisted of the following:

 

 

 

 

 

 

 

 

 

 

 

 

 

Useful

 

 

 

 

 

 

 

    

Life (yr)

    

December 31, 2019

    

December 31, 2018

 

 

 

 

 

 

 

 

 

 

RigHands (Trademark and Formula)

 

 

15

 

$

150,000

 

$

150,000

MWTS Tradename

 

 

10

 

 

190,000

 

 

190,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

340,000

 

 

340,000

 

 

 

 

 

 

 

 

 

 

Less: impairment

 

 

 

 

 

(190,000)

 

 

 —

Less: accumulated amortization

 

 

 

 

 

(18,758)

 

 

(10,344)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

131,242

 

$

329,656

 

 

Amortization expense for the year ended December 31, 2019 and 2018 was $28,997 and $10,344, respectively. Future amortization of the intangible assets for the years ended December 31, 2020, 2021, 2022, 2023, 2024 and beyond are $10,000,  $10,000,  $10,000,  $10,000,  $10,000 and $81,242, respectively.

 

During the year ended December 31, 2019, the Company fully impaired its MWTS Tradename intangible asset of $169,417 related to the acquisition of Momentum Water Transfer Services LLC on December 7, 2018.

Goodwill

During the year ended December 31, 2019, the Company fully impaired its goodwill of $185,751 related to the acquisition of Momentum Water Transfer Services LLC on December 7, 2018.