Quarterly report pursuant to Section 13 or 15(d)

C. INTANGIBLE ASSETS AND GOODWILL

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C. INTANGIBLE ASSETS AND GOODWILL
6 Months Ended
Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL

Total identifiable intangible assets acquired and their carrying values at June 30, 2016 are:

 

      Cost       Accumulated Amortization       Accumulated Impairment       Carrying Value       Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:                                      
Subscriber lists – EthoStream   $ 2,900,000     $ (2,245,583 )   $     $ 654,417       12.0
Total Amortized Identifiable Intangible Assets     2,900,000       (2,245,583 )           654,417        
Goodwill – EthoStream     8,796,430             (3,000,000 )     5,796,430        
Total Goodwill     8,796,430             (3,000,000 )     5,796,430        
Total   $ 11,696,430     $ (2,245,583 )   $ (3,000,000 )   $ 6,450,847        

 

Total identifiable intangible assets acquired and their carrying values at December 31, 2015 are:

 

      Cost       Accumulated Amortization       Accumulated Impairment       Carrying Value     Weighted Average Amortization Period (Years)
Amortized Identifiable Intangible Assets:                                    
Subscriber lists – EthoStream   $ 2,900,000     $ (2,124,743 )   $     $ 775,257     12.0
Total Amortized Identifiable Intangible Assets     2,900,000       (2,124,743 )           775,257      
Goodwill – EthoStream     8,796,430             (3,000,000 )     5,796,430      
Total Goodwill     8,796,430               (3,000,000 )     5,796,430      
Total   $ 11,696,430     $ (2,124,743 )   $ (3,000,000 )   $ 6,571,687      

 

Total amortization expense charged to operations for each of the three and six months ended June 30, 2016 and 2015 was $60,420 and $120,840. The weighted average remaining amortization period for the subscriber list is 2.70 years.

 

Estimated future amortization expense as of June 30, 2016 is as follows:

  

  Remainder of 2016     $ 120,840  
  2017       241,680  
  2018       241,680  
  2019       50,217  
  Total     $ 654,417  

 

The Company does not amortize goodwill. The Company recorded goodwill in the amount of $8,796,430 as a result of the acquisition of EthoStream during the year ended December 31, 2007. The Company evaluates goodwill for impairment based on the fair value of the reporting units to which this goodwill relates at least once a year. The Company utilizes a discounted cash flow valuation methodology (income approach) to determine the fair value of the reporting unit. Since acquisition, the Company has written off $3,000,000 of goodwill for EthoStream.