Annual report pursuant to Section 13 and 15(d)

4. Goodwill and Intangible Assets

v3.19.1
4. Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
4. Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

 

Goodwill

 

The following table presents goodwill and impairment for the years ended December 31, 2018 and 2017:

 

 

    Goodwill
December 31, 2016   $ 803,118   
Acquired     -   
Impairment     -   
December 31, 2017     803,118   
Acquired     2,022,489   
Impairment     (2,288,057)  
December 31, 2018   $ 537,550   

 

We conducted our annual impairment test of goodwill as of December 31, 2018 and 2017, which resulted in impairment charges of $2,288,057 and $0, respectively.

 

Intangible assets

 

The following table presents components of identifiable intangible assets for the years ended December 31, 2018 and 2017:

 

 

    December 31, 2018   December 31, 2017
    Gross
Carrying
Amount 		  Accumulated
Amortization 		  Net Carrying
Amount 		Weighted
Average
Useful
Life
(Years) 		  Gross
Carrying
Amount 		  Accumulated
Amortization 		  Net Carrying
Amount 		  Weighted
Average
Useful
Life
(Years)
Patents and trademarks   $ 177,944      $ (72,957)     $ 104,986    15      $ 179,053      $ (60,875)     $ 118,178      15   
Customer and merchant
relationships 		    2,343,112        (1,507,024)       836,088    10        1,620,112        (1,466,664)       153,448      10   
Trade name     197,868        (137,872)       59,996    10        171,969        (130,936)       41,033      10   
Acquired technology     684,540        (523,448)       161,092    10        521,540        (521,540)       -      10   
Non-compete agreement     79,299        (2,508)       76,791    -        -        —        -      -   
    $ 3,482,763      $ (2,243,810)     $ 1,238,953        $ 2,492,674      $ (2,180,015)     $ 312,659       

 

During the years ended December 31, 2018 and 2017, we recorded amortization expense related to our intangible assets of $63,795 and $40,148, respectively, which is included in depreciation and amortization in the consolidated statement of operations.

 

During the years ended December 31, 2018 and 2017, we recorded impairment charges related to our intangible assets of $0 and $0, respectively.

 

Expected future intangible asset amortization as of December 31, 2018 is as follows:

 

 

Year ending December 31,   Amount
2019   $ 143,832   
2020     143,832   
2021     147,766   
2022     145,886   
2023     145,886   
Thereafter     501,751   
Total   $ 1,238,953