CareCloud, Inc. Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets - Net (Tables)

12 Months Ended

Dec. 31, 2016

The following is the summary of the changes to the carrying amount of goodwill for the years ended December 31, 2016 and 2015:

Below is a summary of intangible asset activity for the years ended December 31, 2016 and 2015:

	Customer		Non-Compete		Other Intangible
	Relationships		Agreements		Assets		Total
COST
Balance, January 1, 2016	$	12,166,546	$	1,206,272	$	488,082	$	13,860,900
Purchase of other intangible assets		-		-		200,404		200,404
Allocation from 2016 Acquisitions		4,204,829		30,105		600,853		4,835,787
Balance, December 31, 2016	$	16,371,375	$	1,236,377	$	1,289,339	$	18,897,091
Useful lives		3 Years		3 Years		3 Years
ACCUMULATED AMORTIZATION
Balance, January 1, 2016	$	7,351,532	$	835,771	$	294,193	$	8,481,496
Amortization expense		4,146,023		270,935		164,931		4,581,889
Balance, December 31, 2016		11,497,555		1,106,706		459,124		13,063,385
Net book value	$	4,873,820	$	129,671	$	830,215	$	5,833,706

COST
Balance, January 1, 2015	$	11,164,988	$	1,206,272	$	309,486	$	12,680,746
Purchase of other intangible assets		-		-		97,596		97,596
Acquisition of specific customer relationships		494,358		-		-		494,358
Allocation from 2015 Acquisitions		507,200		-		81,000		588,200
Balance, December 31, 2015	$	12,166,546	$	1,206,272	$	488,082	$	13,860,900
Useful lives		3 Years		3 Years		3 Years
ACCUMULATED AMORTIZATION
Balance, January 1, 2015	$	3,754,244	$	313,647	$	235,018	$	4,302,909
Amortization expense		3,597,288		522,124		59,175		4,178,587
Balance, December 31, 2015		7,351,532		835,771		294,193		8,481,496
Net book value	$	4,815,014	$	370,501	$	193,889	$	5,379,404

As of December 31, 2016, future amortization expense scheduled to be expensed is as follows: