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7. Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

7.	GOODWILL AND INTANGIBLE ASSETS

The following table sets forth the changes in the carrying amount of the Company’s goodwill at December 31, 2018 and December 31, 2017:



Balance, December 31, 2016	$	8,104,056
Acquisition of Netspective Webfiltering		696,705
Balance, December 31, 2017		8,800,761
Acquisition of Bonnie Boat assets		52,500
Balance, December 31, 2018	$	8,853,261

The following table sets forth the components of the Company’s intangible assets at December 31, 2018 and December 31, 2017:

	December 31, 2018									December 31, 2017
	Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Net Book Value
Intangible assets subject to amortization:
Customer relationships	10.00	$	1,600,286	$	(396,371	)	$	1,203,915	$	1,600,286	$	(236,343	)	$	1,363,943
Mobile software applications	2.00		282,500		(282,500	)		–		282,500		(240,729	)		41,771
NetSpective webfiltering software	5.00		1,134,435		(453,774	)		680,661		1,134,435		(226,887	)		907,548
Noncompete agreements	2.00		846,638		(846,638	)		–		846,638		(846,638	)		–
Subtotal	–		3,863,859		(1,979,283	)		1,884,576		3,863,859		(1,550,597)			2,313,262
Intangible assets not subject to amortization:
Trade names	–		4,455,595		–			4,455,595		4,455,595		–			4,455,595
Total intangible assets	–	$	8,319,454	$	(1,979,283	)	$	6,340,171	$	8,319,454	$	(1,550,597	)	$	6,768,857

The Company recorded amortization expense for intangible assets subject to amortization of $428,686 for the year ended December 31, 2018 and $1,092,592 during the year ended December 31, 2017.

The following table provides information regarding estimated amortization expense for intangible assets subject to amortization for each of the following years ending December 31:

2019	$	386,916
2020		386,916
2021		386,916
2022		160,029
2023		160,029
Thereafter		403,772
	$	1,884,578