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GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS  
NOTE 4 - GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 4 - GOODWILL AND OTHER INTANGIBLE ASSETS

 

Goodwill

 

Goodwill is derived from our 2019 business acquisition as well as our five asset acquisitions in the first three quarters of 2021. The aggregate goodwill recognized from our five 2021 acquisitions is $8,174,496 while the 2019 acquisition was $3,517,315. The Company performed its most recent goodwill impairment test as of September 30, 2021 using market data and discounted cash flow analysis. Based on that test, we have determined that the carrying value of goodwill related to the 2019 acquisition of Genesys was impaired in the amount of $2,530,325 at September 30, 2021.

 

Intangible Assets

 

During the three months ended March 31, 2021, we acquired certain intangible assets pursuant to our Scouted and Upsider acquisitions described in Note 12. During the three months ended June 30, 2021, we acquired certain intangible assets pursuant to our OneWire acquisition described in Note 12. During the three months ended September 30, 2021, we acquired certain intangible assets pursuant to our Parrut and Novo Group acquisitions described in Note 12. These intangible assets aggregate approximately $11.6 million and consist primarily of sales and client relationships, contracts, intellectual property, partnership and vendor agreements and certain other assets. We completed the accounting and preliminary valuations of the assets acquired and, accordingly, the estimated fair values of these intangible assets are provisional pending the final valuations which will not exceed one year in accordance with ASC 805.

 

Intangible assets are summarized as follows:

 

 

 

September 30,

2021

 

 

December 31,

2020

 

Customer contracts

 

$6,601,143

 

 

$233,107

 

License

 

 

5,512,399

 

 

 

1,726,965

 

Domains

 

 

40,862

 

 

 

-

 

 

 

 

12,154,404

 

 

 

1,960,072

 

Less accumulated amortization

 

 

(2,791,411 )

 

 

(1,164,208 )

Carrying value

 

$9,362,993

 

 

$795,864

 

 

Amortization expense of intangible assets was $842,934 and $184,172 for the three months ended September 30, 2021 and 2020, respectively, and was $1,677,202 and $502,518 for the nine months ended September 30, 2021 and 2020, respectively, related to the intangible assets acquired in business combinations. Approximate future amortization of intangible assets is expected to be as follows: 2021, $892,826; 2022, $3,084,921; 2023 $2,925,748; 2024, $1,364,495; 2025, $776,867; and thereafter, $318,136. The Company began amortizing intangible assets from the Scouted, Upsider and OneWire acquisitions in the second quarter of 2021 and the Parrut and Novo Group acquisitions in the third quarter of 2021.