Business Combinations

12 Months Ended

Dec. 31, 2011

Business Combinations [Abstract]

Business Combinations

Note 4 - Business Combinations

Stock Purchase Acquisition - IntelliSys, Inc., September 30, 2010

On September 30, 2010, Epazz acquired 100% of the issued and outstanding shares, including voting rights, and the net assets of IntelliSys in exchange for $155,816. The purchase consisted of a cash payment of $125,000 and an unsecured $30,815 seller financed note payable, bearing 6% payable 10 years from the date of purchase. The purchase resulted in $53,588 of goodwill. The acquisition was intended to expand operations and enable Epazz to take advantage of economies of scale in an effort to increase net income. According to the purchase method of accounting, the Company recognized the identifiable assets acquired and liabilities assumed as follows:

	September 30,
	2010
Consideration:
Cash paid at closing	$	125,000
Seller financed note payable(1)		30,815
Fair value of total consideration exchanged	$	155,815
Fair value of identifiable assets acquired and liabilities assumed:
Cash	$	319
Accounts receivable		15,362
Fixed assets		5,137
Intangible asset, software		200,000
Total assets		220,818
Accounts Payable		(18,476	)
Accrued expenses		(43,974	)
Deferred revenue		(28,820	)
Notes payable(1)		(27,321	)
Total liabilities		(118,591	)
Net fair value of assets and liabilities assumed		102,227
Consideration paid in excess of fair value (Goodwill)(2)	$	53,588
(1)Consideration included an unsecured $30,815 seller financed note payable, bearing 6% payable 10 years from the date of purchase.
(2)The consideration paid in excess of the net fair value of assets acquired and liabilities assumed has been recognized as goodwill.