Intangible Assets (Notes)

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

INTANGIBLE ASSETS

The identifiable intangible assets, other than Goodwill, consists of the following assets:


	September 30, 2021				December 31, 2020
	Intangible Asset Gross Value		Accumulated Amortization		Intangible Asset Gross Value		Accumulated Amortization		Useful Life (in years)
Content provider networks	$	160,000	$	160,000	$	160,000	$	160,000	2
Trade names	87,000		87,000		87,000		87,000		1
Developed technology	820,000		820,000		820,000		820,000		5
Self-service content customers	2,810,000		2,810,000		2,810,000		2,304,444		3
Managed content customers	2,140,000		2,140,000		2,140,000		2,140,000		3
Domains	166,469		166,469		166,469		166,469		5
Embedded non-compete provision	28,000		28,000		28,000		28,000		2
Total	$	6,211,469	$	6,211,469	$	6,211,469	$	5,705,913

Total identifiable intangible assets from the Company’s acquisitions and other acquired assets net of accumulated amortization thereon consists of the following:


	September 30, 2021		December 31, 2020
Ebyline Intangible Assets	$	2,370,000	$	2,370,000
ZenContent Intangible Assets	722,000		722,000
Domains	166,469		166,469
TapInfluence Intangible Assets	2,953,000		2,953,000
Total	$	6,211,469	$	6,211,469
Less accumulated amortization	(6,211,469)		(5,705,913)
Intangible assets, net	$	—	$	505,556

As of September 30, 2021, the Company has fully amortized all identifiable intangible assets. There were no impairment charges associated with the Company’s identifiable intangible assets in the three and nine months ended September 30, 2021 and 2020.

Amortization expense recorded in depreciation and amortization in the accompanying consolidated statements of operations and comprehensive loss was $72,222 and $237,657 for the three months ended September 30, 2021 and 2020, respectively, and $505,556 and $842,637 for the nine months ended September 30, 2021 and 2020, respectively.

The portion of this amortization expense specifically related to the costs of acquired technology that is excluded from cost of revenue and recorded in depreciation and amortization was $11,500 and $159,500 for the three and nine months ended September 30, 2020, respectively. There was no amortization expense specifically related to the costs of acquired technology in the three and nine months ended September 30, 2021.

As of September 30, 2021, there are no future estimated amortization expenses related to identifiable intangible assets.

The Company’s goodwill balance changed as follows:


	Amount
Balance on December 31, 2019	$	8,316,722
Acquisitions, impairments, or other changes during 2020	(4,300,000)
Balance on December 31, 2020	4,016,722
Acquisitions, impairments, or other changes during 2021	—
Balance on September 30, 2021	$	4,016,722

The Company performs annual impairment tests on its goodwill during the fourth fiscal quarter, unless events occur during the year trigger the need for interim testing. In March 2020, the Company identified triggering events due to the

reduction in its projected revenue due to adverse economic conditions caused by the COVID-19 pandemic, the continuation of a market capitalization below the Company’s carrying value, and uncertainty for recovery given the volatility of the capital markets surrounding COVID-19. The Company performed an interim assessment of goodwill, using the discounted cash flow method under the income approach and the guideline transaction method under the market approach, and determined that the carrying value of the Company’s reporting unit as of March 31, 2020 exceeded the fair value. As a result of the valuation, the Company recorded a $4.3 million impairment of goodwill, which is reflected as an expense under impairment of goodwill in the consolidated statements of operations and comprehensive loss for the nine months ended September 30, 2020. The Company did not identify any triggering events during the three and nine months ended September 30, 2021.