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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

The Company has recorded goodwill of $18,555,578 as of June 30, 2020. There were no changes in the carrying amount of goodwill during the six month period ended June 30, 2020.

Intangible assets consists of the following:

June 30, 2020

Gross Carrying

Accumulated

Net Book

Amount

Amortization

Value

Customer Relationships

1,980,000

(1,980,000

)

Channel Relationships

2,628,080

(1,080,433

)

1,547,647

Internally Developed Software

1,623,298

(1,145,122

)

478,176

Trade Name and Trademarks

290,472

(119,417

)

171,055

6,521,850

(4,324,972

)

2,196,878

	DECEMBER 31, 2019


	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value

Customer Relationships	$	1,980,000	$	(1,980,000	)	$	-
Channel Relationships		2,628,080		(992,830	)		1,635,250
Internally Developed Software		1,623,122		(988,340	)		634,782
Trade Name and Trademarks		290,472		(109,734	)		180,738

	$	6,521,674	$	(4,070,904	)	$	2,450,770

For the three and six month periods ended June 30, 2020, the Company capitalized $178,000 and $519,00, respectively, of internally developed software costs, primarily associated with upgrading our secure identity management technology and network operations center. For the three and six month periods ended June 30, 2019, the Company capitalized internally developed software costs of approximately $67,225 and $125,725, respectively, related to costs associated with our next generation TDI Optimiser™ application. There were no disposals of intangible assets during the three month periods ended June 30, 2020 and 2019.

The aggregate amortization expense recorded for the three month periods ended June 30, 2020 and 2019 were approximately $125,700 and $198,800, respectively. The aggregate amortization expense recorded for the six month periods ended June 30, 2020 and 2019 were approximately $251,300 and $397,600, respectively The total weighted remaining average life of all purchased intangible assets and internally developed software costs was approximately 4.5 years and 2.5 years, respectively, at June 30, 2020.

As of June 30, 2020, estimated annual amortization for our intangible assets for each of the next five years is approximately:

Remainder of 2020	$	202,924
2021		333,714
2022		273,937
2023		194,570
2024		194,570
Thereafter		997,163
Total	$	2,196,878