Note 7 - Goodwill and Other Intangible, Net

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note

7

–

Goodwill and Other Intangible, Net

On

August 1, 2016,

Quaint Oak Insurance Agency, LLC began operations by acquiring the renewal rights to the book of business produced and serviced by an independent insurance agency located in New Britain, Pennsylvania, that provides a broad range of personal and commercial insurance coverage solutions. The Company paid

$1.0

million for these rights. Based on a valuation,

$515,000

of the purchase price was determined to be goodwill and

$485,000

was determined to be related to the renewal rights to the book of business and deemed to be an other intangible asset. This other intangible asset is being amortized over a

ten

year period based upon the annual retention rate of the book of business. The balance of other intangible asset at

September 30, 2020

was

$283,000

net of accumulated amortization of

$202,000.

Amortization expense for the

three

and

nine

months ended

September 30, 2020

and

2019

amounted to approximately

$12,000

and

$36,000

,

respectively.