10. Goodwill

3 Months Ended

Mar. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The changes in the carrying amount of goodwill and accumulated impairment losses for the period ended March 31, 2015 and December 31, 2014, respectively, are as follows:

	K9 Bytes		Jadian		Strand		Total
Balance, December 31, 2014:	$	87,244	$	81,253	$	206,321	$	374,818
Goodwill acquired during the period		–		–		–		–
Impairment loses		–		–		–		–
Balance, March 31, 2015:	$	87,244	$	81,253	$	206,321	$	374,818

Our subsidiaries operate as a single operating segment. The fair value of the goodwill is tested for impairment in the fourth quarter, after the annual forecasting process. Our annual forecasting resulted in impairment losses of $1,489,078 during the year ended December 31, 2014. We will perform our next earnings forecast during the fourth quarter of 2015, unless events occur or circumstances change that would more likely than not reduce the fair value of the reporting unit below its carrying amount. The fair value of our goodwill was estimated using the expected present value of future cash flows.