The investment and advances to an affiliated company relates to a 29.9% interest in a company that operates an FM radio station. The investment is one in which the Company exercises significant influence and the share of net profits or losses are accounted for in net income. The original investment was $1,000,000 and the remaining balance is comprised of advances, net of the Company’s share of the cumulative net profits and losses. Advances to the affiliated company bear interest at prime and have no fixed terms of repayment.
The customer-related intangible asset is being amortized on a straight-line basis over twenty years.