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GOODWILL AND INTANGIBLE ASSETS
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 3 — GOODWILL AND INTANGIBLE ASSETS

 

As of September 30, 2021, in connection with its acquisitions of 42West, The Door, Viewpoint, Shore Fire, Be Social and B/HI, the Company has a balance of $20,015,800 of goodwill on its condensed consolidated balance sheet which management has assigned to the entertainment publicity and marketing segment. The Company evaluates goodwill in the fourth quarter or more frequently if management believes indicators of impairment exist. Such indicators could include but are not limited to (1) a significant adverse change in legal factors or in business climate, (2) unanticipated competition, or (3) an adverse action or assessment by a regulator. There were no triggering events noted during the three month period ended September 30, 2021 that would require the Company to reassess goodwill for impairment outside of its regular annual impairment test.

 

Goodwill

 

All of the Company’s goodwill is related to the entertainment, publicity and marketing segment. Changes in the carrying value of goodwill were as follows:

 

         
Balance as of December 31, 2020     $ 19,627,856  
Measurement period adjustments(1)       (82,651 ) 
Business Acquisitions(2)       470,595  
Balance as of September 30, 2021     $ 20,015,800  

———————

(1) Working Capital adjustment recorded in June 2021 in connection with the Be Social acquisition. (See Note 4)
(2) Acquisition of B/HI in January 2021.

 

Intangible Assets

  

Intangible assets consisted of the following as of September 30, 2021 and December 31, 2020:

 

                              
   September 30, 2021   December 31, 2020 
   Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		   Gross
Carrying
Amount		   Accumulated
Amortization		   Net
Carrying
Amount		 
Intangible assets subject to amortization:                              
Customer relationships  $8,290,000   $4,609,768   $3,680,232   $8,130,000   $3,787,406   $4,342,593 
Trademarks and trade names   4,490,000    1,678,167    2,811,833    4,440,000    1,330,535    3,109,465 
Non-compete agreements   690,000    645,000    45,000    630,000    630,000    — 
   $13,470,000   $6,932,935   $6,537,065   $13,200,000   $5,747,941   $7,452,059 

 

Amortization expense associated with the Company’s intangible assets was $394,998 and $423,412 for the three months ended September 30, 2021 and 2020, respectively, and $1,184,994 and $1,254,402 for the nine months ended September 30, 2021 and 2020, respectively.

 

Amortization expense related to intangible assets for the next five years is as follows:

 

     
2021 (October 1 through December 31, 2021)  $ 394,997  
2022   1,367,330  
2023   1,152,421  
2024   991,715  
2025   961,373  
Thereafter   1,669,229  
 Total $ 6,537,065