Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

The Company has recorded goodwill of $18,555,578 as of September 30, 2020. There were no changes in the carrying amount of goodwill during the nine month period ended September 30, 2020.

Intangible assets consists of the following:

	SEPTEMBER 30, 2020
			(Unaudited)
	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
Customer Relationships	$	1,980,000	$	(1,980,000	)	$	-
Channel Relationships		2,628,080		(1,124,234	)		1,503,846
Internally Developed Software		1,629,772		(1,223,512	)		406,260
Trade Name and Trademarks		290,472		(124,258	)		166,214
	$	6,528,324	$	(4,452,004	)	$	2,076,320

	DECEMBER 31, 2019
	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
Customer Relationships	$	1,980,000	$	(1,980,000	)	$	-
Channel Relationships		2,628,080		(992,830	)		1,635,250
Internally Developed Software		1,623,122		(988,340	)		634,782
Trade Name and Trademarks		290,472		(109,734	)		180,738
	$	6,521,674	$	(4,070,904	)	$	2,450,770

For the three and nine month periods ended September 30, 2020, the Company capitalized $234,000 and $753,000, respectively, of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Telecommunications Management System), secure identity management technology and network operations center. For the three and nine month periods ended September 30, 2019, the Company capitalized internally developed software costs of approximately $21,000 and $146,800, respectively, related to costs associated with our next generation TDI Optimiser™ application. There were no disposals of intangible assets during the three month periods ended September 30, 2020 and 2019.

The aggregate amortization expense recorded for the three month periods ended September 30, 2020 and 2019 were approximately $125,700 and $198,800, respectively. The aggregate amortization expense recorded for the nine month periods ended September 30, 2020 and 2019 were approximately $377,00 and $596,500, respectively The total weighted remaining average life of all purchased intangible assets and internally developed software costs was approximately 4.3 years and 1.0 year, respectively, at September 30, 2020.

As of September 30, 2020, estimated annual amortization for our intangible assets for each of the next five years is approximately:

Remainder of 2020	$	77,270
2021		333,714
2022		202,021
2023		194,570
2024		194,570
Thereafter		1,074,175
Total	$	2,076,320