7. Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7. GOODWILL AND INTANGIBLE ASSETS

The following table sets forth the changes in the carrying amount of the Company’s goodwill at March 31, 2019, and December 31, 2018:

Balance, December 31, 2017	$	8,800,761
Acquisition of Bonnie Boat assets		52,500
Balance, December 31, 2018	$	8,853,261
Activity for the period ended March 31, 2019		–
Balance March 31, 2019	$	8,853,261

The Company recorded amortization expense for intangible assets subject to amortization of $96,729 for the three months ended March 31, 2019, and $1,092,592 for the year ended December 31, 2018.

The following table sets forth the components of the Company’s intangible assets at March 31, 2019, and December 31, 2018:

	March 31, 2019									December 31, 2018
	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		(436,378	)		1,163,908	$	1,600,286	$	(396,371	)	$	1,203,915
Mobile software applications		2.00		282,500		(282,500	)		–		282,500		(282,500	)		–
NetSpective webfiltering software		2.00		1,134,435		(510,496	)		623,939		1,134,435		(453,774	)		680,661
Noncompete agreements		1.50		846,638		(846,638	)		–		846,638		(846,638	)		–
Subtotal				3,863,859		(2,076,012	)		1,787,847		3,863,859		(1,979,273	)		1,884,576
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	$	(2,076,012	)	$	6,243,442	$	8,319,454	$	(1,979,283	)	$	6,340,171

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	$	290,185
2020		386,916
2021		386,916
2022		160,029
2023		160,029
Thereafter		403,772
	$	1,787,847