NOTE 5.

INTANGIBLE ASSETS:

The Company’s intangible assets primarily consists of the customer lists it acquired through various acquisitions. We amortize our intangible assets that have finite lives using either the straight-line method or based on estimated future cash flows to approximate the pattern in which the economic benefit of the asset will be utilized. Amortization expense was $2.3 million and $2.9 million during the years ended December 31, 2019 and December 31, 2018, respectively. This amortization expense relates to customer lists which expire through 2022.

During the year ended December 31, 2019 and December 31, 2018, we determined, based upon the results of our annual goodwill impairment testing as further described in Note 6, that a triggering event had occurred with respect to certain customer lists contained in the reporting units where goodwill impairment was determined to have occurred, and recorded an impairment charge of $0 million and $0.9 Million respectively. The determination of the fair value of intangible assets requires significant inputs, judgments and estimates. These fair value measurements, and related inputs, are considered to be Level 3 measures under the fair value hierarchy as further described in Note 16. There were no triggering events during the year ended December 31, 2019.

Components of intangible assets were as follows, as of December 31:

	2019						2018
	Gross Carrying Amount		Accumulated Amortization and Impairment		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer lists	$	13,563,414		9,986,414		3,577,000		13,563,414		7,793,414		5,770,000
Software	$	425,064		417,843		7,221		425,064		417,028		8,036

Total intangible assets:	$	13,988,478		10,404,257		3,584,221		13,988,478		8,210,442		5,778,036

Our future amortization schedule is as follows:

Year ending December 31,	Amount
2020		2,075,610
2021		1,383,611
2022		125,000
Total	$	3,584,221