Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

The Company has recorded goodwill of $18,555,578 as of June 30, 2021. There were no changes in the carrying amount of goodwill during the six month period ended June 30, 2021.

Intangible assets consists of the following:

	JUNE 30, 2021
	Gross
	Carrying		Accumulated			Net Book
	Amount		Amortization			Value
	(Unaudited)
Channel Relationships		2,628,080		(1,255,638	)		1,372,442
Internally Developed Software		2,183,759		(1,421,226	)		762,533
Trade Name and Trademarks		290,472		(138,782	)		151,690
	$	5,102,311	$	(2,815,646	)	$	2,286,665
	DECEMBER 31, 2020
	Gross
	Carrying		Accumulated			Net Book
	Amount		Amortization			Value
	(Unaudited)
Customer Relationships	$	1,980,000	$	(1,980,000	)	$	-
Channel Relationships		2,628,080		(1,168,036	)		1,460,044
Internally Developed Software		1,846,194		(1,280,108	)		566,086
Trade Name and Trademarks		290,472		(129,099	)		161,373
	$	6,744,746	$	(4,557,243	)	$	2,187,503

For the three and six month periods ended June 30, 2021, the Company capitalized $665,900 and $1,235,800, respectively, of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Telecommunications Management System), next generation TDI^TM application, secure identity management technology and network operations center of which $208,935 was transferred from capital work in progress to internally developed software during the period. Capital work in progress is included in other long-term assets in the consolidated balance sheet

For the three and six month periods ended June 30, 2020, the Company capitalized $178,000 and $519,000, respectively, of internally developed software costs, primarily associated with upgrading our secure identity management technology and network operations center.

During the six month period ended June 30, 2021, the Company disposed of fully amortized intangible assets with a historical cost and accumulated amortization of $1,980,000. There were no disposals of intangible assets during the six month periods ended June 30, 2021 and 2020.

The aggregate amortization expense recorded for the three month periods ended June 30, 2021 and 2020 were approximately $120,300 and $125,700, respectively. The aggregate amortization expense recorded for the six month periods ended June 30, 2021 and 2020 were approximately $239,300 and $251,300, respectively

As of June 30, 2021, estimated annual amortization for our intangible assets for each of the next five years is approximately:

Remainder 2021	$	280,887
2022		523,546
2023		424,869
2024		214,226
2025		194,570
Thereafter		648,567
Total	$	2,286,665