Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill (Tables)

v3.19.1
Intangible Assets and Goodwill (Tables)
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets from Continuing Operations
The following is a schedule of intangible assets and goodwill as of December 31, 2018:
 
Term
 
Carrying
Value
 
Accumulated Amortization and Impairment
 
Net Carrying Value
 
2018
Amortization
 
 
 
 
 
 
 
 
 
 
Customer list, Google
20 years
 
$
8,820,000

 
$
(3,013,500
)
 
$
5,806,500

 
$
441,000

Technology, NetSeer
5 years
 
3,600,000

 
(1,380,000
)
 
2,220,000

 
720,000

Customer list, all other
10 years
 
1,610,000

 
(1,100,194
)
 
509,806

 
161,004

Customer relationships, NetSeer
20 years
 
570,000

 
(54,625
)
 
515,375

 
28,500

Trade names, web properties (1)
-
 
390,000

 

 
390,000

 

Brand, NetSeer
1 year
 
121,000

 
(121,000
)
 

 
10,083

Non-competition agreements, NetSeer
1 year
 
69,000

 
(69,000
)
 

 
5,750

Intangible assets classified as long-term
 
 
$
15,180,000

 
$
(5,738,319
)
 
$
9,441,681

 
$
1,366,337

 
 
 
 
 
 
 
 
 
 
Goodwill, total
 
 
$
9,853,342

 
$

 
$
9,853,342

 
$


The following is a schedule of intangible assets and goodwill as of December 31, 2017
 
Term
 
Carrying
Value
 
Accumulated Amortization
 
Net Carrying Value
 
2017
Amortization
Customer list, Google
20 years
 
$
8,820,000

 
$
(2,572,500
)
 
$
6,247,500

 
$
441,000

Technology, NetSeer
5 years
 
3,600,000

 
(660,000
)
 
2,940,000

 
660,000

Customer list, all other
10 years
 
1,610,000

 
(939,190
)
 
670,810

 
161,004

Trade names, ALOT
5 years
 
960,000

 
(960,000
)
 

 
32,000

Customer relationships, NetSeer
20 years
 
570,000

 
(26,125
)
 
543,875

 
26,125

Domain websites (2)
5 years
 
300,001

 
(300,001
)
 

 
32,056

Tradenames, web properties (1)
-
 
390,000

 

 
390,000

 

Brand, NetSeer
1 year
 
121,000

 
(110,917
)
 
10,083

 
110,917

Non-competition agreements, NetSeer
1 year
 
69,000

 
(63,250
)
 
5,750

 
63,250

Intangible assets classified as long-term
 
 
$
16,440,001

 
$
(5,631,983
)
 
$
10,808,018

 
$
1,526,352

 
 
 
 
 
 
 
 
 
 
Goodwill, total
 
 
$
9,853,342

 
$

 
$
9,853,342

 
$

___________

(1)
The trade names related to our web properties have an indefinite life, and as such are not amortized.
(2)
In May 2015, we purchased two domain websites with a fair value of $715,874. We determined they should be amortized over 5 years. In May 2016, the carrying value was adjusted by approximately $46,000 to reflect the lower price paid as compared to the contingent liability recorded as a result of the change in the price of Inuvo stock from the date of acquisition to the first contingent release of shares. In 2017, we determined that the seller would not meet the specific performance target for the second and third years and therefore, we adjusted the carrying value of the intangible asset and associated contingent liability by $369,506.

Schedule of Amortization Expense
Our amortization expense over the next five years and thereafter is as follows:
 
2019
$
1,350,504

2020
1,350,504

2021
1,350,504

2022
556,294

2023
469,500

Thereafter
3,974,375

Total
$
9,051,681