• Filing Date: 2018-11-13
  • Form Type: 10-Q
  • Description: Quarterly report
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IDENTIFIABLE INTANGIBLE ASSETS
9 Months Ended
Sep. 30, 2018
Identifiable Intangible Assets  
IDENTIFIABLE INTANGIBLE ASSETS

The following provides a breakdown of identifiable intangible assets as of September 30, 2018:

 

    Customer Relationships     Marketing Related     Technology Based     Total  
Identifiable intangible assets, gross   $ 5,588,677     $ 730,000     $ 83,412     $ 6,402,089  
Accumulated amortization     (1,123,201 )     (189,091 )     (6,951 )     (1,319,243 )
Identifiable intangible assets, net   $ 4,465,476     $ 540,909     $ 76,461     $ 5,082,846  

 

In connection with the acquisition of Firestorm, Global and Brekford, the Company identified intangible assets of $2,497,686, $2,574,000 and $558,412, respectively, representing trade names, customer relationships and technology. In addition, as of December 31, 2017, intangibles attributable to the asset acquisition of BC Management totaled $386,804, and as of January 1, 2018, intangibles attributable to the asset acquisition of Secure Education totaled $386,001. These assets are being amortized on a straight-line basis over their weighted average estimated useful life of 7.8 years. Amortization expense for the three months ended September 30, 2018 and 2017 was $262,245 and $327,120, respectively, and for the nine months ended September 30, 2018 and 2017 was $772,833 and $327,120, respectively.

 

As of September 30, 2018, the estimated annual amortization expense for each of the next five fiscal years is as follows:

 

2018 (remainder of year)   $ 262,245  
2019     1,048,980  
2020     1,048,980  
2021     982,876  
2022     238,155  
Thereafter     1,501,610  
Total   $ 5,082,846