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

6 Months Ended

Jun. 30, 2020

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 six months ended June 30, 2020 and the year ended December 31, 2019:

	Six Months Ended		Year Ended
	June 30, 2020		December 31, 2019
Beginning gross balance	$	12,633,696	$	12,593,795
Acquisitions		37,074,514		39,901
Ending gross balance	$	49,708,210	$	12,633,696

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, 2020 and December 31, 2019 consist of the following:

	June 30, 2020		December 31, 2019
Contracts and relationships acquired	$	43,497,300	$	23,597,300
Capitalized software		7,824,576		538,012
Non-compete agreements		1,236,377		1,236,377
Other intangible assets		3,263,552		1,489,458
Total intangible assets		55,821,805		26,861,147
Less: Accumulated amortization		24,028,768		20,883,922
Intangible assets - net	$	31,793,037	$	5,977,225

Amortization expense was approximately $3.2 million and $1.2 million for the six months ended June 30, 2020 and 2019, respectively, and $2.1 million and $612,000 for the three months ended June 30, 2020 and 2019, respectively. The weighted-average amortization period is currently approximately 4.1 years.

As of June 30, 2020, future amortization scheduled to be expensed is as follows:

Years ending

December 31,
2020 (six months)	$	6,173,120
2021		9,790,704
2022		7,716,583
2023		5,269,929
2024		1,192,701
Thereafter		1,650,000
Total	$	31,793,037