Intangible Assets, Net

6 Months Ended

Jun. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

4.	Intangible Assets, Net

At June 30, 2018, the Company’s intangible assets, net, consisted of the following:

	Useful	Gross					Net
	Life	June 30,		Accumulated			June 30,
	(Years)	2018		Amortization			2018
Indefinite Lived Assets:
Medicare license	N/A	$	1,994,000	$	-		$	1,994,000
Amortized Intangible Assets:
Network relationships	11-15		109,883,000		(42,332,259	)		67,550,741
Management contracts	15		22,832,000		(6,278,801	)		16,553,199
Member relationships	12		6,696,000		(668,084	)		6,027,916
Patient management platform	5		2,060,000		(240,333	)		1,819,667
Tradename/trademarks	20		1,011,000		(29,487	)		981,513
		$	144,476,000	$	(49,548,964	)	$	94,927,036

At December 31, 2017, the Company’s intangible assets, net, consisted of the following:

	Useful	Gross					Net
	Life	December 31,		Accumulated			December 31,
	(Years)	2017		Amortization			2017
Indefinite Lived Assets:
Medicare license	N/A	$	1,994,000	$	-		$	1,994,000
Amortized Intangible Assets:
Network relationships	11-15		109,883,000		(35,842,508	)		74,040,492
Management contracts	15		22,832,000		(5,014,886	)		17,817,114
Member relationships	12		6,696,000		(46,500	)		6,649,500
Patient management platform	5		2,060,000		(34,336	)		2,025,664
Tradename/trademarks	20		1,011,000		(4,212	)		1,006,788
		$	144,476,000	$	(40,942,442	)	$	103,533,558

Included in depreciation and amortization on the accompanying consolidated statements of income is amortization expense of $4,211,621 and $4,322,476 (excluding $106,000 amortization expense for exclusivity incentives) for the three months ended June 30, 2018 and 2017, respectively, and $8,606,522 and $8,697,317 (excluding $212,000 amortization expense for exclusivity incentives) for the six months ended June 30, 2018 and 2017, respectively.

Future amortization expense is estimated to be as follows for the years ending December 31:

	Amount

2018 (remaining six months)	$	8,050,000
2019		14,480,000
2020		12,671,000
2021		10,961,000
2022		9,448,000
Thereafter		37,323,000

	$	92,933,000