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INTANGIBLE ASSETS | 3 Months Ended
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Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 6. INTANGIBLE ASSETS Shown below are the details of intangible assets at March 31, 2017 and December 31, 2016:
|  | IP Software |  | Portfolios and Client Lists |  | Client Acquisition Costs |  | PCI Certification |  | Trademarks |  | Domain Names |  | Covenant Not to Compete |  | Total |
Balance at December 31, 2015 |  | $ | 1,548,601 |  | $ | 1,489,175 |  | $ | 1,048,060 |  | $ | 355,458 |  | $ | 561,772 |  | $ | 339,147 |  | $ | 81,667 |  | $ | 5,423,880 |
Additions |  |  | 102,689 |  |  | - |  |  | 1,319,820 |  |  |  |  |  |  |  |  | 83 |  |  |  |  |  | 1,422,592 |
Amortization |  |  | (1,271,226) |  | $ | (704,184) |  |  | (670,543) |  |  | (149,668) |  |  | (234,064) |  |  | (145,270) |  |  | (81,667) |  |  | (3,256,622) |
Balance at December 31, 2016 |  |  | 380,064 |  |  | 784,991 |  |  | 1,697,337 |  |  | 205,790 |  |  | 327,708 |  |  | 193,960 |  |  | - |  |  | 3,589,850 |
Additions |  |  | 45,591 |  |  | - |  |  | 403,585 |  |  | - |  |  | - |  |  | - |  |  |  |  |  | 449,176 |
Amortization |  |  | (60,739) |  |  | (158,434) |  |  | (221,195) |  |  | (37,417) |  |  | (58,516) |  |  | (36,317) |  |  | - |  |  | (572,618) |
Balance at March 31, 2017 |  | $ | 364,916 |  | $ | 626,557 |  | $ | 1,879,727 |  | $ | 168,373 |  | $ | 269,192 |  | $ | 157,643 |  | $ | - |  | $ | 3,466,408 |
Depreciation and amortization expense for the period ended March 31, 2017 and March 31, 2016 was $657,363 and $888,118, respectively. During the three months ended March 31, 2017, we incurred $572,618 of amortization as described in the table above. Additionally, we incurred $51,542 for the amortization of terminal inventory placed with merchant customers. The remaining $33,203, not included in table above, was for fixed assets (See Note 5. Fixed Assets). During the three months ended March 31, 2016, we amortized $846,737 for intangible assets and $33,821 for the amortization of terminal inventory placed with merchant customers. Additionally, we recorded $7,560 in depreciation for fixed assets (See Note 5. Fixed Assets). The following table presents the estimated aggregate future amortization expense of other intangible assets:
Year |  | Amortization Expense |
2017 (9 months) |  | $ | 833,865 |
2018 |  |  | 1,111,820 |
2019 |  |  | 1,111,821 |
2020 |  |  | 408,902 |
2021 |  |  | - |
Total |  | $ | 3,466,408 |
Software At times, capitalized software development costs that add value to or extend the useful of the related software it develops for internal use and licensing. Costs for routine software updates are expensed as incurred. Capitalized costs are amortized over 36 months on a straight-line basis. Impairment is reviewed quarterly to ensure only viable active costs are capitalized. During the three months and twelve months ended March 31, 2017 and December 31, 2016, respectively, we capitalized $45,591 and $102,689 of development costs as follows:
| ⋅ | point of sale software ($43,176, and $1,469)
| ⋅ | payment processing software ($0 and $89,101)
| ⋅ | mobile payments billing software ($2,415 and $12,119)
For the three months ended March 31, 2017 and 2016, amortization was $60,739 and $353,304, respectively. Merchant Portfolios Merchant Portfolios consist of portfolios purchased by us that earn future streams of income. The remaining contract terms of these portfolios range from 15 to 36 months at the time of acquisition. The useful lives of merchant portfolios represent management’s best estimate over which we expect to recognize the economic benefits of these intangible assets. At March 31, 2017 and December 31, 2016, the net value of these portfolios were $626,557 and $784,991, respectively. For the three months ended March 31, 2017 and 2016 amortization was $158,434 and $176,046, respectively. Trademarks and Domain Names At March 31, 2017 and December 31, 2016, the net book values of trademarks were $269,192 and $327,708, respectively, and the net book value of the domain names were $157,642 and $193,959, respectively. For the three months ended March 31, 2017, amortization for trademarks was $58,516. For the three months ended March 31, 2016, amortization was $41,667. For the three months ended March 31, 2017, amortization for domain names was $36,317. For the three months ended March 31, 2016, amortization was $24,999. PCI Certification During 2015, we acquired a “Payment Card Industry” (PCI) Certification with our acquisition of PayOnline. This certification had a fair market value of $449,000 at the date of acquisition. At March 31, 2017 and December 31, 2016, the net book value of this certification was $168,373 and $205,790, respectively. For the three months ended March 31, 2017 and 2016, amortization for this certification was $37,417 and $37,417, respectively. Non-Compete Agreements In connection with the Company’s acquisition of Unified Payments, LLC in 2013, two key executives signed covenants not to compete. These covenants have a three-year life and had a net book value of $0 and $11,667 at March 31, 2017 and 2016, respectively. For the three months ended March 31, 2017 and 2016, amortization was $0 and $70,000, respectively. Non-Compete agreements were fully amortized at December 31, 2016.

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- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
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