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7. Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7: Goodwill and Intangible Assets, Net

Goodwill

In 2013, the Company recognized $10,365,806 in Goodwill, representing the excess of the fair value of the consideration for the Merger over net identifiable assets acquired. Pursuant to FASB ASC 350-20, Goodwill is not subject to amortization but is subject to annual review to determine if certain events warrant impairment to the Goodwill asset.

As a result of the ChizComm acquisition, the consideration exceeded the fair value of the assets acquired by $9,607,027. Accordingly, this amount was recorded as Goodwill at the time of the acquisition. Through March 31, 2021, the Company has not recognized any impairment to Goodwill.

The following table represents details of our goodwill balance:

	Total
Goodwill as of December 31, 2020	$	10,365,806
Acquisition of ChizComm Entities		9,607,027
Goodwill as of March 31, 2021	$	19,972,833

Intangible Assets, Net

The Company had the following intangible assets as of March 31, 2021, and December 31, 2020:

	March 31, 2021			December 31, 2020
Trademarks (a)	$	129,831		$	129,831
Trade Name (b)		3,430,000			–
Customer Relations (c)		6,140,000			–
Non-Compete (d)		60,000			–
Other Intangible Assets (a)		299,028			299,028
Intangible Assets, Gross		10,058,859			428,859
Less Accumulated Amortization (e)		(491,687	)		(400,165	)

Intangible Assets, Net	$	9,567,172		$	28,694

	(a)	Pursuant to FASB ASC 350-30-35, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events.
	(b)	Amount represents fair value of the ChizComm and ChizComm Beacon Media trade names which have determined to have an indefinite useful life.
	(c)	Amount represents fair value of the ChizComm and ChizComm Beacon Media customer relationships with a useful life of 12 years. Amortization expense for the three months ended March 31, 2021 was $85,333.
	(d)	Amount represents fair value of the Non-compete agreements as part of the ChizComm acquisition. The non-compete agreements have a useful life of 3 years. Amortization expense for the three months ended March 31, 2021 was $3,333.
	(e)	During the three months ended March 31, 2021 and March 31, 2020, the Company recognized, $2,855 and $10,791, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.

Expected future intangible asset amortization as of March 31, 2021 is as follows:

Fiscal Year:
2021	$	407,391
2022		542,528
2023		538,187
2024		514,400
Thereafter		4,134,666
Total	$	6,137,172