Annual report pursuant to Section 13 and 15(d)

Note 7 - Goodwill and Intangible Assets, net

v3.5.0.2
Note 7 - Goodwill and Intangible Assets, net
12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Note 7
– Goodwill and Intangible Assets, net

Goodwill

The following table summarizes the Company’s goodwill for the periods indicated resulting from the acquisitions by the Company:

 
 
Goodwill
 
 
     
Balance at December 31, 2014
 
$
-
 
Storycode acquisition
   
4,259,350
 
SwellPath acquisition
   
3,959,590
 
Balance at December 31, 2015
 
$
8,218,940
 

During the year ended December 31, 2015 the Company recognized an adjustment to goodwill to reflect the fair value of the stock consideration for the business acquisitions made during the first quarter of 2015.

Intangible Assets, net

The following table summarizes the Company’s intangible assets, net for the period indicated:

 
      December 31, 2015  
   
Estimated Useful Life (Years)
 
Gross Carrying Amount
 
Accumulated Amortization
   
Impairment
 
Net Book Value
 
 
                       
Trade names
 
3 to 7
   
$
340,000
   
$
41,925
   
$
-
   
$
298,075
 
Customer relationships
 
5
     
2,460,000
     
283,475
     
-
     
2,176,525
 
Non-compete agreements
 
1.5
     
128,000
     
69,250
     
-
     
58,750
 
Total Intangible assets, net
       
$
2,928,000
   
$
394,650
   
$
-
   
$
2,533,350
 

Amortization expense related to intangible assets totaled $394,650 and $0 for the years ended December 31, 2015, and 2014, respectively.  As of December 31, 2014 the Company had no intangible assets.

The following table summarizes the Company’s future amortization expense for the periods indicated:

2016
 
$
572,653
 
2017
   
570,415
 
2018
   
590,917
 
2019
   
591,928
 
2020
   
152,437
 
Thereafter
   
55,000
 
Total future amortization expense
 
$
2,533,350