Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

The following is a schedule of our intangible assets from continuing operations as of March 31, 2013:



	Term	Carrying Value		Accumulated Amortization and Impairment			Net Carrying Value		2013 Amortization Expense
Names database (1)	9 months	$	17,417,397	$	(17,417,397	)	$	—	$	322,771
Bundled downloads (1)	4.5 months	2,447,075		(2,447,075		)	—		5,894
Intangible assets classified as current		$	19,864,472	$	(19,864,472	)	$	—	$	328,665
Customer list, Google	20 years	8,820,000		(477,750		)	8,342,250		110,250
Customer list, all other	10 years	1,610,000		(174,421		)	1,435,579		40,251
Exclusivity agreement	1 year	120,000		(120,000		)	—		20,000
Trade names, ALOT (2)	5 years	960,000		(208,000		)	752,000		48,000
Trade names, web properties (2)	Indefinite	390,000		—			390,000		—
Intangible assets classified as long-term		$	11,900,000	$	(980,171	)	$	10,919,829	$	218,501
Goodwill		$	5,760,808	$	—		$	5,760,808	n/a


(1)	The amortization of our names database and bundled downloads assets are included in cost of revenue. Effective during the first quarter of 2013, we determined our names database purchases no longer have a useful life. As a result, we recognized a charge of $322,771 in the first quarter of 2013 to expense the remaining balance.


(2)	Our ALOT trade names acquired through the merger with Vertro were determined to have a useful life of five years. Our Inuvo trade name intangible is indefinite-lived and is not amortized.

Our amortization expense over the next five years and thereafter as of March 31, 2013 is as follows:



2013	$	595,503
2014	794,004
2015	794,004
2016	794,004
2017	634,004
Thereafter	6,918,310
Total	$	10,529,829

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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