Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.19.2
Intangible Assets and Goodwill
6 Months Ended
Jun. 30, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

NOTE 10 - INTANGIBLE ASSETS AND GOODWILL

 

The following table summarizes identifiable intangible assets of the Company as of December 31, 2018 and June 30, 2019:

 

June 30, 2019 (Unaudited)  

Useful Lives

(In Years)

    Gross Carrying Amount     Accumulated Amortization     Net Carrying Amount  
                         
Amortized:                                
Customer relationships     9 - 10     $ 4,068,000       (642,000 )     3.426,000  
Trademark and tradename     3 - 15       1,471,000       (255,000 )     1,216,000  
Patents     7 - 13       2,467,000       (1,344,000 )     1,123,000  
Favorable contract interest     5       388,000       (186,000 )     202,000  
Covenant not to compete     4       208,000       (81,000 )     127,000  
              8,602,000       (2,508,000 )     6,094,000  
                                 
Unamortized:                                
Customer list             104,000       -       104,000  
Trademark and Tradename             61,000       -       61,000  
                                 
              165,000       -       165,000  
                                 
Total           $ 8,767,000     $ (2,508,000 )   $ 6,259,000  

 

December 31, 2018   Useful Lives (In Years)     Gross Carrying Amount     Accumulated Amortization     Net Carrying Amount  
                         
Amortized:                                
Customer relationships     10     $ 3,123,000       (442,000 )     2,681,000  
Trademark and tradename     10 - 15       1,367,000       (178,000 )     1,189,000  
Patents     11       1,489,000       (1,218,000 )     271,000  
Favorable contract interest     5       388,000       (137,000 )     251,000  
Covenant not to compete     4       208,000       (60,000 )     148,000  
              6,575,000       (2,035,000 )     4,540,000  
                                 
Unamortized:                                
Customer list             104,000       -       104,000  
Trademark and Tradename             61,000       -       61,000  
                                 
              165,000       -       165,000  
                                 
Total           $ 6,740,000     $ (2,035,000 )   $ 4,705,000  

 

Amortization expense for the three- and six-month periods ended June 30, 2018 was $178,000 and $356,000, respectively, and for the three- and six-month periods ended June 30, 2019 was $280,000 and $473,000, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows:

 

Year ending December 31:      
       
July - December 2019   $ 495,000  
2020     991,000  
2021     815,000  
2022     710,000  
2023     683,000  
Thereafter     2,400,000  
      6,094,000  

 

The change in goodwill from January 1, 2019 to June 30, 2019 is as follows:

 

Balance of as January 1, 2019   $ 7,318,000  
CarrierWeb acquisition     1,055,000  
Balance as of June 30, 2019   $ 8,373,000