| Goodwill and Intangible Assets |
NOTE 8 – GOODWILL AND INTANGIBLE ASSETS
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:
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Ecessa |
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IVDesk |
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Total |
January 1, 2020 |
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$ |
— |
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$ |
— |
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$ |
— |
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Acquisition |
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1,341,000 |
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745,000 |
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2,086,000 |
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December 31, 2020 |
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$ |
1,341,000 |
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$ |
745,000 |
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$ |
2,086,000 |
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June 30, 2021 |
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$ |
1,341,000 |
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$ |
745,000 |
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$ |
2,086,000 |
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Gross goodwill |
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1,341,000 |
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745,000 |
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2,086,000 |
Accumulated impairment loss |
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— |
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— |
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— |
Balance at June 30, 2021 |
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$ |
1,341,000 |
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$ |
745,000 |
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$ |
2,086,000 |
The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and were as follows:
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June 30, 2021 |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net |
Trade Name/Trademark/Internet Domain Assets |
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$ |
101,000 |
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$ |
(9,000) |
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$ |
92,000 |
Non-compete Agreements |
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80,000 |
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(29,000) |
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51,000 |
Customer Relationships |
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1,010,000 |
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(123,000) |
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887,000 |
Internally Developed Software |
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1,800,000 |
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(279,000) |
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1,521,000 |
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$ |
2,991,000 |
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$ |
(440,000) |
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$ |
2,551,000 |
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December 31, 2020 |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net |
Trade Name/Trademark/Internet Domain Assets |
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$ |
90,000 |
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$ |
(5,000) |
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$ |
85,000 |
Non-compete Agreements |
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80,000 |
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(16,000) |
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64,000 |
Customer Relationships |
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1,010,000 |
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(34,000) |
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976,000 |
Internally Developed Software |
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1,800,000 |
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(150,000) |
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1,650,000 |
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$ |
2,980,000 |
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$ |
(205,000) |
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$ |
2,775,000 |
Amortization expense on these identifiable intangible assets was $236,000 and $0 in first six months of 2021 and 2020 respectively. The amortization expense is included in selling, general and administrative expenses. The estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows:
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Year Ending December 31: |
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Q2 - Q4 2021 |
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$ |
221,000 |
2022 |
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442,000 |
2023 |
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426,000 |
2024 |
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415,000 |
2025 |
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381,000 |
Thereafter |
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666,000 |
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