CareCloud, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets-Net

Goodwill and Intangible Assets-Net

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

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 nine months ended September 30, 2018 and the year ended December 31, 2017:

	September 30,		December 31,
	2018		2017
Beginning gross balance	$	12,263,943	$	12,178,868
Acquisitions		417,112		85,075
Ending gross balance	$	12,681,055	$	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 September 30, 2018 and December 31, 2017 consist of the following:

	September 30,			December 31,
	2018			2017
Contracts and relationships acquired	$	22,591,300		$	16,491,300
Non-compete agreements		1,236,377			1,236,377
Other intangible assets		1,528,688			1,498,417
Total intangible assets		25,356,365			19,226,094
Less: Accumulated amortization		(18,176,212	)		(16,716,550	)
Intangible assets - net	$	7,180,153		$	2,509,544

Amortization expense was approximately $1.5 million and $3.2 million for the nine months ended September 30, 2018 and 2017, and approximately $633,000 and $508,000 for the three months ended September 30, 2018 and 2017, respectively. The weighted-average amortization period is eight years.

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

Years ending
December 31
2018 (three months)	$	607,297
2019		1,764,306
2020		942,635
2021		850,553
2022		577,860
Thereafter		2,437,502
Total	$	7,180,153