Mobivity Holdings Corp. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets [Abstract]

Goodwill and Purchased Intangibles

3. Goodwill and Intangible Assets

Goodwill

The following table presents goodwill and impairment for the years ended December 31, 2017 and 2016:



	Goodwill
December 31, 2015	$	1,921,072
Acquired		1,129,493
Impairment		(2,247,447)
December 31, 2016		803,118
Acquired		-
Impairment		-
December 31, 2017	$	803,118

We conducted our annual impairment test of goodwill as of December 31, 2017 and 2016, which resulted in impairment charges of $0 and $2,247,447, respectively.

Intangible assets

The following table presents components of identifiable intangible assets for the years ended December 31, 2017 and 2016:



	December 31, 2017							December 31, 2016
	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	$	179,053	$	(60,875)	$	118,178	15	$	161,298	$	(48,761)	$	112,537	12
Customer and merchant relationships		1,620,112		(1,466,664)		153,448	10		1,620,112		(1,442,112)		178,000	10
Trade name		171,969		(130,936)		41,033	10		171,883		(124,224)		47,659	10
Acquired technology		521,540		(521,540)		-	10		521,540		(521,540)		-	10
Non-compete agreement		-		-		-	-		7,443		(7,443)		-	-
	$	2,492,674	$	(2,180,015)	$	312,659		$	2,482,276	$	(2,144,080)	$	338,196

During the years ended December 31, 2017 and 2016, we recorded amortization expense related to our intangible assets of $40,148 and $212,086, respectively, which is included in depreciation and amortization in the consolidated statement of operations.

During the years ended December 31, 2017 and 2016, we recorded impairment charges related to our intangible assets of $0 and $1,266,387, respectively.

Expected future intangible asset amortization as of December 31, 2017 is as follows:



Year ending December 31,	Amount
2018	$	43,082
2019		43,082
2020		43,082
2021		40,569
2022		40,148
Thereafter		102,696
Total	$	312,659

- 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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