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, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

5. GOODWILL AND Intangible Assets NET

The following is the summary of the changes to the carrying amount of goodwill for the nine months ended September 30, 2016 and the year ended December 31, 2015:

	September 30, 2016		December 31, 2015
Beginning gross balance	$	8,971,994	$	8,560,336
Acquisitions		501,771		411,658
Ending gross balance	$	9,473,765	$	8,971,994

Intangible assets - net as of September 30, 2016 and December 31, 2015 consist of following:

	September 30, 2016			December 31, 2015
Contracts and relationships acquired	$	13,721,375		$	12,166,546
Non-compete agreements		1,236,377			1,206,272
Other intangible assets		619,223			488,082
Total intangible assets		15,576,975			13,860,900
Less: Accumulated amortization		(11,647,119	)		(8,481,496	)
Intangible assets - net	$	3,929,856		$	5,379,404

Amortization expense was $3,167,736 and $3,188,294 for the nine months ended September 30, 2016 and 2015, respectively, and $989,540 and $1,024,971 for the three months ended September 30, 2016 and 2015, respectively. The weighted-average amortization period is three years.

As of September 30, 2016, future amortization expense scheduled to be expensed is as follows:

Years ending
December 31
2016 (three months)	$	938,693
2017		2,224,971
2018		637,391
2019		128,801
Total	$	3,929,856

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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