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Intangible Assets
 9 Months Ended
Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

5 INTANGIBLE ASSETS

 

KSIX and BMG - The customer lists and related contracts of KSIX and BMG were recorded at their fair value of $1,143,162 upon their acquisition on December 23, 2014. The Company has determined a useful life of existing contracts and customer lists of three years and is amortizing the cost over that period.

 

DIQ - The customer lists and related contracts of DIQ were recorded at their fair value of $1,630,973 upon their acquisition on October 12, 2015. The Company has estimated the fair value of the assets acquired and liabilities assumed as part of the acquisition and is currently undergoing a formal valuation and will adjust these estimates, if necessary, within the one year measurement period. (Note 4). The Company has determined a useful life of existing contracts and customer lists of three years and is amortizing the cost over that period.

 

Intangible assets are as follows:

 

    September 30, 2016     December 31, 2015  
             
Cost   $ 2,774,135     $ 2,774,135  
Accumulated amortization     (1,201,311 )     (507,777 )
Balance   $ 1,572,824     $ 2,266,358  
                 
Amortization expense for the nine months ended September 30, 2016 and 2015   $ 693,534     $ 285,789  
                 
Amortization expense for the three months ended September 30, 2016 and 2015   $ 231,178     $ 95,263