Annual report pursuant to Section 13 and 15(d)

GOODWILL AND INTANGIBLE ASSETS - NET

v3.3.1.900
GOODWILL AND INTANGIBLE ASSETS - NET
12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
5.
GOODWILL AND Intangible Assets – NET
 
The following is the summary of the changes to the carrying amount of goodwill for the years ended December 31, 2015 and December 31, 2014.
 
 
 
December 31,
 
December 31,
 
 
 
2015
 
2014
 
Beginning gross balance
 
$
8,560,336
 
$
344,000
 
Acquisitions
 
 
411,658
 
 
8,216,336
 
Ending gross balance
 
$
8,971,994
 
$
8,560,336
 
 
Below is a summary of intangible asset activity for the years ended December 31, 2015 and 2014:
 
 
 
 
 
 
 
Other
 
 
 
 
 
Customer
 
Non-Compete
 
Intangible
 
 
 
 
 
Relationships
 
Agreements
 
Assets
 
Total
 
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 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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COST
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2014
 
$
2,939,988
 
$
281,272
 
$
85,588
 
$
3,306,848
 
Acquired backlog from 2014 Acquisitions
 
 
-
 
 
-
 
 
148,408
 
 
148,408
 
Purchase of other intangible assets
 
 
-
 
 
-
 
 
75,490
 
 
75,490
 
Allocation from 2014 Acquisitions
 
 
8,225,000
 
 
925,000
 
 
-
 
 
9,150,000
 
Balance, December 31, 2014
 
$
11,164,988
 
$
1,206,272
 
$
309,486
 
$
12,680,746
 
Useful lives
 
 
3 Years
 
 
3 Years
 
 
3 Years
 
 
 
 
ACCUMULATED AMORTIZATION
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2014
 
$
1,626,776
 
$
65,723
 
$
79,569
 
$
1,772,068
 
Amortization expense
 
 
2,127,468
 
 
247,924
 
 
155,449
 
 
2,530,841
 
Balance, December 31, 2014
 
 
3,754,244
 
 
313,647
 
 
235,018
 
 
4,302,909
 
Net book value
 
$
7,410,744
 
$
892,625
 
$
74,468
 
$
8,377,837
 
 
Other intangible assets primarily represent the purchase of software. Amortization expense was $4,178,587 and $2,530,841 for the years ended December 31, 2015 and 2014, respectively. The weighted-average amortization period is three years.
 
As of December 31, 2015, future amortization expense scheduled to be expensed is as follows:
 
Years ending
 
 
 
December 31
 
 
 
2016
 
$
3,468,621
 
2017
 
 
1,708,069
 
2018
 
 
202,714
 
Total
 
$
5,379,404