SUNation Energy, Inc. 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, 2020

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

NOTE 9 – GOODWILL AND INTANGIBLE ASSETS

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 fair value of goodwill of $745,000 and acquired identifiable intangible assets of $720,000 is provisional at December 31, 2020 depending on the final valuations for those assets.

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