GOODWILL AND INTANGIBLE ASSETS (Tables)
|
6 Months Ended |
12 Months Ended |
Jun. 30, 2021 |
Dec. 31, 2020 |
| Goodwill and Intangible Assets Disclosure [Abstract] |
|
|
| The changes in the carrying amount of goodwill |
The
changes in the carrying amount of goodwill for the year ended December 31, 2020 and six months ended June 30, 2021 by company are as
follows:
| |
|
|
|
|
|
|
|
|
|
| |
|
Ecessa |
|
IVDesk |
|
Total |
| January
1, 2020 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
| |
|
|
|
|
|
|
|
|
|
| Acquisition |
|
|
1,341,000 |
|
|
745,000 |
|
|
2,086,000 |
| |
|
|
|
|
|
|
|
|
|
| December
31, 2020 |
|
$ |
1,341,000 |
|
$ |
745,000 |
|
$ |
2,086,000 |
| |
|
|
|
|
|
|
|
|
— |
| June
30, 2021 |
|
$ |
1,341,000 |
|
$ |
745,000 |
|
$ |
2,086,000 |
| |
|
|
|
|
|
|
|
|
|
| Gross
goodwill |
|
|
1,341,000 |
|
|
745,000 |
|
|
2,086,000 |
| Accumulated
impairment loss |
|
|
— |
|
|
— |
|
|
— |
| Balance
at June 30, 2021 |
|
$ |
1,341,000 |
|
$ |
745,000 |
|
$ |
2,086,000 |
|
The changes
in the carrying amount of goodwill for the year ended December 31, 2020 by company are as follows:
| |
|
|
Ecessa |
|
|
|
IVDesk |
|
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
| January 1, 2020 |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition |
|
|
1,341,000 |
|
|
|
745,000 |
|
|
|
2,086,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| December 31, 2020 |
|
$ |
1,341,000 |
|
|
$ |
745,000 |
|
|
$ |
2,086,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross goodwill |
|
|
1,341,000 |
|
|
|
745,000 |
|
|
|
2,086,000 |
|
| Accumulated
impairment loss |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Balance at December 31,
2020 |
|
$ |
1,341,000 |
|
|
$ |
745,000 |
|
|
$ |
2,086,000 |
|
|
| The Company’s identifiable intangible assets with finite lives |
The
Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and were as follows:
| |
|
|
June
30, 2021 |
| |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net |
| Trade
Name/Trademark/Internet Domain Assets |
|
$ |
101,000 |
|
$ |
(9,000) |
|
$ |
92,000 |
| Non-compete
Agreements |
|
|
80,000 |
|
|
(29,000) |
|
|
51,000 |
| Customer
Relationships |
|
|
1,010,000 |
|
|
(123,000) |
|
|
887,000 |
| Internally
Developed Software |
|
|
1,800,000 |
|
|
(279,000) |
|
|
1,521,000 |
| |
|
$ |
2,991,000 |
|
$ |
(440,000) |
|
$ |
2,551,000 |
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
December
31, 2020 |
| |
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Net |
| Trade
Name/Trademark/Internet Domain Assets |
|
$ |
90,000 |
|
$ |
(5,000) |
|
$ |
85,000 |
| Non-compete
Agreements |
|
|
80,000 |
|
|
(16,000) |
|
|
64,000 |
| Customer
Relationships |
|
|
1,010,000 |
|
|
(34,000) |
|
|
976,000 |
| Internally
Developed Software |
|
|
1,800,000 |
|
|
(150,000) |
|
|
1,650,000 |
| |
|
$ |
2,980,000 |
|
$ |
(205,000) |
|
$ |
2,775,000 |
|
The Company’s
identifiable intangible assets with finite lives (excluding the provisional $720,000 related to IVDesk) are being amortized over their
estimated useful lives and were as follows:
| |
|
December
31, 2020 |
|
| |
|
Gross
Carrying Amount |
|
|
Accumulated
Amortization |
|
|
Net |
|
| |
|
|
|
|
|
|
|
|
|
| Trade Name/Trademark/Internet
Domain Assets |
|
$ |
90,000 |
|
|
$ |
(5,000 |
) |
|
$ |
85,000 |
|
| Non-compete Agreements |
|
|
80,000 |
|
|
|
(16,000 |
) |
|
|
64,000 |
|
| Customer Relationships |
|
|
290,000 |
|
|
|
(34,000 |
) |
|
|
256,000 |
|
| Internally
Developed Software |
|
|
1,800,000 |
|
|
|
(150,000 |
) |
|
|
1,650,000 |
|
| |
|
$ |
2,260,000 |
|
|
$ |
(205,000 |
) |
|
$ |
2,055,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| The estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows: |
Amortization
expense on these identifiable intangible assets was $236,000
and
$0 in
first six months of 2021 and 2020 respectively. The amortization expense is included in selling, general and administrative expenses.
The estimated future amortization expense for identifiable intangible assets during the next five fiscal
years is as follows:
| |
|
|
|
| Year
Ending December 31: |
|
|
|
| Q2
- Q4 2021 |
|
$
|
221,000 |
| 2022 |
|
|
442,000 |
| 2023 |
|
|
426,000 |
| 2024 |
|
|
415,000 |
| 2025 |
|
|
381,000 |
| Thereafter |
|
|
666,000 |
|
Amortization
expense on these identifiable intangible assets was $205,000 and $0 in 2020 and 2019 respectively. The amortization expense is included
in selling, general and administrative expenses. The estimated future amortization expense for identifiable
intangible assets during the next five fiscal years is as follows:
| Year Ending December 31: |
|
|
|
|
| 2021 |
|
$ |
351,000 |
|
| 2022 |
|
|
351,000 |
|
| 2023 |
|
|
335,000 |
|
| 2024 |
|
|
324,000 |
|
| 2025 |
|
|
290,000 |
|
| Thereafter |
|
|
404,000 |
|
|