Mobivity Holdings Corp. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Intangibles

Goodwill and Purchased Intangibles

9 Months Ended

Sep. 30, 2016

Goodwill and Purchased Intangibles [Abstract]

Goodwill and Purchased Intangibles

4. Goodwill and Purchased Intangibles

Goodwill

The carrying value of goodwill at September 30, 2016 and December 31, 2015 was $3,046,108 and $1,921,072, respectively.

Intangible assets

The following table presents details of our purchased intangible assets as of September 30, 2016 and December 31, 2015:



	Balance at December 31, 2015		Additions		Impairments		Amortization		Fx and Other		Balance at September 30, 2016
Patents and trademarks	$	78,931	$	32,915	$	-	$	(7,789)	$	1,295	$	105,352
Customer and merchant relationships		1,373,513		-		-		(124,865)		-		1,248,648
Non-compete agreement		-		7,200		-		(5,599)		729		2,330
Trade name		135,567		1,100		-		(12,495)		119		124,291
Acquired technology		187,298		-		-		(17,027)		-		170,271
	$	1,775,309	$	41,215	$	-	$	(167,775)	$	2,143	$	1,650,892

The intangible assets are being amortized on a straight line basis over their estimated useful lives of one to twenty years.

The Company recorded an impairment charge for patent application fees that were not granted of $21,188 for both the three and nine months ended September 30, 2015.

Amortization expense for intangible assets was $61,016 and $53,692 for the three months ended September 30, 2016 and 2015, respectively.

Amortization expense for intangible assets was $167,775 and $161,076 for the nine months ended September 30, 2016 and 2015, respectively.

The estimated future amortization expense of our intangible assets as of September 30, 2016 is as follows:



Year ending December 31,	Amount
2016	$	57,168
2017		218,418
2018		218,075
2019		218,075
2020		217,381
Thereafter		721,775
Total	$	1,650,892

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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