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INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

NOTE 6.  INTANGIBLE ASSETS

The Company had $2,898,765 and $3,127,760 in intangible assets at March 31, 2018 and December 31, 2017, respectively. Shown below are the details.

			IP Software				Portfolios and Client Lists				Client Acquisition Costs				PCI Certification				Trademarks				Domain Names				Total
Balance at December 31, 2016			$	380,064			$	784,991			$	1,697,337			$	205,790			$	327,708			$	193,960			$	3,589,850
Additions				48,489								1,801,685																1,850,174
Amortization				(209,251	)			(510,937	)			(1,063,687	)			(149,667	)		$	(235,515	)			(143,207	)			(2,312,264	)
Balance at December , 2017			$	219,302			$	274,054			$	2,435,335			$	56,123			$	92,193			$	50,753			$	3,127,760
Additions				3,135				100,000				301,639				—				—				—				404,774
Amortization				(45,671	)		$	(117,501	)			(339,046	)			(37,417	)			(59,004	)			(35,130	)			(633,769	)
Balance at March 31, 2018			$	176,766			$	256,553			$	2,397,928			$	18,706			$	33,189			$	15,623			$	2,898,765

Amortization expense for the three months ended March 31, 2018 was $696,169 of which $633,769 is described in the table above and $62,370 was for the amortization of terminal inventory placed with merchants. The inventory and its associated amortization are included in prepaid and other expenses and are not included in the table above.

Amortization expense for the three months ended March 31, 2017 was $657,363 of which $572,618 was for intangible amortization and $51,542 was for the amortization of terminal inventory placed with merchants. The remaining $33,203, not included in table above, was for fixed assets (See Note 5. Fixed Assets). The inventory and its associated amortization are included in prepaid and other expenses and are not included in the table above.

The following table presents the estimated aggregate future amortization expense of other intangible assets:

Year			Amortization Expense
2018 (nine months)			$	724,690
2019				966,255
2020				966,256
2021				241,564
Total			$	2,898,765

Software

We 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 ended March 31, 2018, we capitalized $3,315 of internally developed POS software development costs.

For the three months ended March 31, 2018 and 2017, amortization was $45,671 and $60,739, respectively.

Merchant Portfolios and client lists

Merchant Portfolios consisted portfolios purchased on business acquisitions that earn future streams of income for the foreseeable future. The remaining useful lives of these portfolios range from 15 months to 36 months at the time of acquisition. At March 31, 2018 and December 31, 2017, the net value of these portfolios was $256,553 and $274,054, respectively.

The useful lives of merchant portfolios represent management’s best estimate over which the Company will recognize the economic benefits of these intangible assets.

Trademarks and Domain Names

At March 31, 2018 and December 31, 2017, the net book value of these trademarks was $33,189 and $92,193, respectively, and the net book value of the domain names was $15,623 and $50,753, respectively.

For the three months ended March 31, 2018 and 2017, amortization for trademarks was $59,004 and $58,516, respectively.

For the three months ended March 31, 2018 and 2017, amortization for domain names was $35,130 and $36,317, respectively.

PCI Certification

At March 31, 2018 and December 31, 2017, the net book value of the PCI certification was $18,706 and $56,123, respectively.

For each of the three months ended March 31, 2018 and 2017, amortization for the PCI certification was $37,417.

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- References

No definition available.

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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
-URI http://asc.fasb.org/topic&trid=2144416

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