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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

7. Goodwill and Intangible Assets

The Company has recorded goodwill of $18,555,578 as of September 30, 2021. There were no changes in the carrying amount of goodwill during the nine month period ended September 30, 2021.

Intangible assets consists of the following:

SEPTEMBER 30, 2021

Gross Carrying

Accumulated

Net Book

Amount

Amortization

Value

(Unaudited)

Channel Relationships

2,628,080

(1,299,440

)

1,328,640

Internally Developed Software

2,616,847

(1,504,241

)

1,112,606

Trade Name and Trademarks

290,472

(143,623

)

146,849

5,535,399

(2,947,304

)

2,588,095

	DECEMBER 31, 2020

	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
	(Unaudited)
Customer Relationships	$	1,980,000	$	(1,980,000	)	$	-
Channel Relationships		2,628,080		(1,168,036	)		1,460,044
Internally Developed Software		1,846,194		(1,280,108	)		566,086
Trade Name and Trademarks		290,472		(129,099	)		161,373

	$	6,744,746	$	(4,557,243	)	$	2,187,503

For the three and nine month periods ended September 30, 2021, the Company capitalized $607,900 and $1,851,900, respectively, of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Telecommunications Management System), next generation TDI^TM application, secure identity management technology and network operations center of which $531,600 was transferred from capital work in progress to internally developed software during the period. Capital work in progress is included in other long-term assets in the consolidated balance sheet

For the three and nine month periods ended September 30, 2020, the Company capitalized $234,000 and $753,000, respectively, of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Telecommunications Management System), secure identity management technology and network operations center.

During the nine month period ended September 30, 2021, the Company disposed of fully amortized intangible assets with a historical cost and accumulated amortization of $1,980,000. There were no disposals of intangible assets during the nine month period ended September 30, 2020.

The aggregate amortization expense recorded for the three month periods ended September 30, 2021 and 2020 were approximately $133,800 and $125,700, respectively. The aggregate amortization expense recorded for the nine month periods ended September 30, 2021 and 2020 were approximately $373,100 and $377,000, respectively

As of September 30, 2021, estimated annual amortization for our intangible assets for each of the next five years is approximately:

Remainder 2021	$	295,515
2022		624,671
2023		491,976
2024		332,799
2025		194,570
Thereafter		648,564
Total	$	2,588,095