Registration of securities issued in business combination transactions

GOODWILL AND INTANGIBLE ASSETS (Tables)

v3.21.4
GOODWILL AND INTANGIBLE ASSETS (Tables)
 9 Months Ended 12 Months Ended
Sep. 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 nine months ended September 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
                  —
September 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 September 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 estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows:

The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and were as follows:

      September 30, 2021
    Gross Carrying Amount   Accumulated Amortization   Net
Trade Name/Trademark/Internet Domain Assets   $ 101,000   $ (12,000)   $ 89,000
Non-compete Agreements     80,000     (36,000)     44,000
Customer Relationships     1,010,000     (160,000)     850,000
Internally Developed Software     1,800,000     (342,000)     1,458,000
    $ 2,991,000   $ (550,000)   $ 2,441,000
                   
                   
      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  
                         

 

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  
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 $346,000 and $106,000 in first nine 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:      
Q4 2021   $ 111,000
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