Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets-Net

v3.10.0.1
Goodwill and Intangible Assets-Net
 6 Months Ended
Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets-Net

4. GOODWILL AND INTANGIBLE ASSETS-NET

 

Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. The following is the summary of the changes to the carrying amount of goodwill for the six months ended June 30, 2018 and the year ended December 31, 2017:

 

    June 30, 2018     December 31, 2017  
Beginning gross balance   $ 12,263,943     $ 12,178,868  
Acquisition     -       85,075  
Ending gross balance   $ 12,263,943     $ 12,263,943  

 

Intangible assets include customer contracts and relationships and covenants not-to-compete acquired in connection with acquisitions, as well as trademarks acquired and software costs. Intangible assets - net as of June 30, 2018 and December 31, 2017 consist of the following:

 

    June 30, 2018     December 31, 2017  
             
Contracts and relationships acquired   $ 16,491,300     $ 16,491,300  
Non-compete agreements     1,236,377       1,236,377  
Other intangible assets     1,521,664       1,498,417  
Total intangible assets     19,249,341       19,226,094  
Less: Accumulated amortization     (17,547,101 )     (16,716,550 )
Intangible assets - net   $ 1,702,240     $ 2,509,544  

 

Amortization expense was approximately $854,000 and $2.6 million for the six months ended June 30, 2018 and 2017 and $415,000 and $1.3 million for the three months ended June 30, 2018 and 2017, respectively. The weighted-average amortization period is three years.

 

As of June 30, 2018, future amortization scheduled to be expensed is as follows:

 

Years Ending December 31      
2018 (six months)   $ 737,104  
2019     850,389  
2020     103,127  
2021     11,620  
Total   $ 1,702,240