XML 46 R17.htm IDEA: XBRL DOCUMENT
v3.20.1

Intangibles | 12 Months Ended
--- | ---
Dec. 31, 2019
Intangible Assets, Net (Excluding Goodwill) [Abstract] |
Intangible Assets | The Company’s intangible assets are comprised of purchased intangibles consisting of customer relationships, channel relationships, telecommunications software, trade names and trademarks and non-compete agreements. Intangible assets acquired in connection with a business combination are valued at fair value and amortized on a straight-line basis over the expected useful life which may range from three (3) to fifteen (15) years or more depending on the intangible asset characteristics. The Company’s intangible assets also include internally developed software used in the sales and delivery of its information technology service offerings. The Company capitalizes certain internal costs related to software development to deliver its information technology services including but not limited to its Intelligent Telecommunications Management System (ITMS™), Public Key Infrastructure (PKI) and Optimiser Telecom Data Intelligence (TDI™) applications. Significant development costs are capitalized from the point of demonstrated technological feasibility until the point in time that the product is available for general release to customers. Once the product is available for general release, capitalized costs are amortized based on units sold, or on a straight-line basis generally over the expected functional life which may range from two (2) to five (5) years. The following tables summarize purchased and internally developed intangible assets subject to amortization as of the periods presented below:
|  | DECEMBER 31, 2019 |
|  |  |  |  |  |  |  |  |  |  | Weighted |
|  |  |  |  |  |  |  |  |  |  | Average |
|  | Gross Carrying |  |  | Accumulated |  |  | Net Book |  |  | Amortization |
|  | Amount |  |  | Amortization |  |  | Value |  |  | Period |
Customer Relationships |  | $ | 1,980,000 |  |  | $ | (1,980,000 | ) |  | $ | - |  |  |  | 8.0 |
Channel Relationships |  |  | 2,628,080 |  |  |  | (992,830 | ) |  |  | 1,635,250 |  |  |  | 5.0 |
Internally Developed Software |  |  | 1,623,122 |  |  |  | (988,340 | ) |  |  | 634,782 |  |  |  | 3.0 |
Trade Name and Trademarks |  |  | 290,472 |  |  |  | (109,734 | ) |  |  | 180,738 |  |  |  | 5.0 |
|  | $ | 6,521,674 |  |  | $ | (4,070,904 | ) |  | $ | 2,450,770 |  |  |  |  |
|  | DECEMBER 31, 2018 |
|  |  |  |  |  |  |  |  |  |  | Weighted |
|  |  |  |  |  |  |  |  |  |  | Average |
|  | Gross Carrying |  |  | Accumulated |  |  | Net Book |  |  | Amortization |
|  | Amount |  |  | Amortization |  |  | Value |  |  | Period |
Customer Relationships |  | $ | 1,980,000 |  |  | $ | (1,732,500 | ) |  | $ | 247,500 |  |  |  | 8.0 |
Channel Relationships |  |  | 2,628,080 |  |  |  | (817,625 | ) |  |  | 1,810,455 |  |  |  | 5.0 |
Internally Developed Software |  |  | 1,476,623 |  |  |  | (630,927 | ) |  |  | 845,696 |  |  |  | 3.0 |
Trade Name and Trademarks |  |  | 290,472 |  |  |  | (90,370 | ) |  |  | 200,102 |  |  |  | 5.0 |
|  | $ | 6,375,175 |  |  | $ | (3,271,422 | ) |  | $ | 3,103,753 |  |  |  |  |
Purchased Intangibles For the years ended December 31, 2019 and 2018, the Company did not recognize any acquisition related intangible assets. For the years ended December 31, 2019, there were no disposals or sales of purchased intangible assets. For the year ended December 31, 2018, the Company disposed of fully amortized purchased intangible assets with a historical cost and accumulated amortization of approximately $2,374,700 Internally Developed For the year ended December 31, 2019, the Company recorded capitalized software development costs of approximately $146,000 related to costs associated with our next generation TDI™ application. For the year ended December 31, 2018 the Company recorded capitalized software development costs of approximately $229,000 related to costs associated with our next generation TDI™ application. The total weighted average remaining life of purchased and internally developed intangible assets is approximately 5.3 years and 1.3 years, respectively, at December 31, 2019. The following table summarizes the estimated future amortization by purchased intangible asset type for fiscal years ending December 31:
INTANGIBLE ASSET TYPE |  | 2020 |  |  | 2021 |  |  | 2022 |  |  | 2023 |  |  | 2024 |  |  | Thereafter |  |  | Total |
Channel Relationships |  | $ | 175,205 |  |  | $ | 175,205 |  |  | $ | 175,205 |  |  | $ | 175,205 |  |  | $ | 175,205 |  |  | $ | 759,225 |  |  | $ | 1,635,250 |
Internally Developed Software |  |  | 274,280 |  |  |  | 244,583 |  |  |  | 98,533 |  |  |  | 17,386 |  |  |  | - |  |  |  | - |  |  |  | 634,782 |
Trade Name and Trademarks |  |  | 19,365 |  |  |  | 19,365 |  |  |  | 19,365 |  |  |  | 19,365 |  |  |  | 19,365 |  |  |  | 83,914 |  |  |  | 180,738 |
|  | $ | 468,850 |  |  | $ | 439,153 |  |  | $ | 293,102 |  |  | $ | 211,956 |  |  | $ | 194,570 |  |  | $ | 843,139 |  |  | $ | 2,450,770 |
The aggregate amortization expense recorded was approximately $786,000 and $756,000 for the years ended December 31, 2019 and 2018, respectively.

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_IntangibleAssetsNetExcludingGoodwillAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration