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Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2020

NOTE 6 – INTANGIBLE ASSETS AND GOODWILL

The below table summarizes the changes in goodwill during the six months ended June 30, 2020:

The below table summarizes the identifiable intangible assets as of June 30, 2020 and December 31, 2019:

	Useful life	2020			2019
Tradenames – trademarks ⁽¹⁾	Indefinite	$	589,200		$	589,200
Customer base ⁽¹⁾	15 years		206,000			206,000
Non-compete agreements ⁽¹⁾	5 years		183,300			183,300
Intellectual property/technology ⁽¹⁾	10 years		122,000			122,000
First priority option to acquire SaaS product (the “SaaS Option”) ⁽¹⁾			-			100,000
			1,100,500			1,200,500
Less accumulated amortization			(46,944	)		(15,648	)
Less impairment charge ⁽²⁾			-			(100,000	)
Total		$	1,053,556		$	1,084,852

⁽¹⁾	These intangible assets were acquired in the acquisition of TalaTek.

⁽²⁾	The Company concluded that the carrying amount of the SaaS Option would not be recoverable and, as a result, fully impaired the asset at December 31, 2019.

The weighted average useful life remaining of identifiable intangible assets remaining is 9.25 years.

Amortization of identifiable intangible assets for the three and six months ended June 30, 2020 was $15,648 and $31,296.

The below table summarizes the future amortization expense for the next five years and thereafter: