Quarterly report pursuant to Section 13 or 15(d)

Other Intangible Assets and Goodwill (Tables)

v3.7.0.1
Other Intangible Assets and Goodwill (Tables)
6 Months Ended
Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets from Continuing Operations
The following is a schedule of intangible assets as of June 30, 2017:
 
Term
 
Carrying
Value
 
Accumulated Amortization and Impairment
 
Net Carrying Value
 
Year-to-date Amortization
 
 
 
 
 
 
 
 
 
 
Customer list, Google
20 years
 
$
8,820,000

 
$
(2,352,000
)
 
$
6,468,000

 
$
220,500

Technology, NetSeer
5 years
 
3,600,000

 
(300,000
)
 
3,300,000

 
300,000

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

 
(858,688
)
 
751,312

 
80,502

Trade names, ALOT
5 years
 
960,000

 
(960,000
)
 

 
32,000

Customer relationships, NetSeer
20 years
 
570,000

 
(11,875
)
 
558,125

 
11,875

Domain websites (2)
5 years
 
447,030

 
(307,639
)
 
139,391

 
39,694

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

 

 
390,000

 

Brand, NetSeer
1 year
 
121,000

 
(50,417
)
 
70,583

 
50,417

Non-competition agreements, NetSeer
1 year
 
69,000

 
(28,750
)
 
40,250

 
28,750

Intangible assets classified as long-term
 
 
$
16,587,030


$
(4,869,369
)
 
$
11,717,661

 
$
763,738

 
 
 
 
 
 
 
 
 
 
Goodwill, total
-
 
$
9,773,842

 
$

 
$
9,773,842

 
$


(1)
The trade names related to our web properties have an indefinite life, and as such are not amortized.
(2)
On May 8, 2015, we purchased two domain websites with a fair value of $715,874. In May 2016, the carrying value was adjusted by approximately $46 thousand 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 March 2017, we determined that the seller would not meet the specific performance target for the second year and therefore, we adjusted the carrying value of the intangible asset by $222,477.
Schedule of Amortization Expense
Amortization expense over the next five years and thereafter is as follows:
 
2017
$
797,234

2018
1,420,301

2019
1,404,468

2020
1,354,985

2021
1,350,504

Thereafter
5,000,169

Total
$
11,327,661